Silver Lake's Potential Acquisition of Workday: A Strategic Move in the Cloud Computing Landscape

What happened: Workday (WDAY) stock surged as much as 21% and was halted for volatility on Thursday.

What's behind the move: A Reuters report said private equity firm Silver Lake was in talks to acquire the software company.

The report, citing people familiar with the matter, said the two parties have held discussions about a potential deal in recent months, but the sources said the talks are ongoing and there is no guarantee of a deal.

What else you need to know: Workday shares recovered from a sell-off earlier this year, when the software sector was pounded by fears that AI would disrupt business models.

Thursday's surge has erased the stock's year-to-date losses, with shares now up 3% since the start of the year.

Ines Ferre is a senior business reporter for Yahoo Finance.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance