Apr 05, 2024 12:14:00

Google's parent company Alphabet is considering acquiring marketing tool HubSpot, which would be its largest acquisition to date

It has been reported that Alphabet, the parent company of Google, is in discussions with advisers to acquire online marketing software company

HubSpot .

Exclusive: Google parent Alphabet weighs offer for HubSpot, sources say | Reuters
https://www.reuters.com/markets/deals/google-parent-alphabet-weighs-offer-hubspot-sources-say-2024-04-04/

As deal rumors fly, Alphabet and HubSpot would be a strange pairing | TechCrunch

https://techcrunch.com/2024/04/04/as-deal-rumors-fly-alphabet-and-hubspot-would-be-a-strange-pairing/

Alphabet considers bid for $32 billion HubSpot: Report
https://www.cnbc.com/2024/04/04/alphabet-in-talks-to-acquire-hubspot.html

HubSpot, which went public in 2014, provides marketing software to companies with around 2,000 employees. HubSpot expects to earn $2.2 billion in revenue in 2023, and investors who expect growth have boosted the stock price by about 50% in 12 months, giving HubSpot a market capitalization of $35 billion at the time of writing.

In order to acquire HubSpot, Alphabet is in discussions with Morgan Stanley, a major bank, to determine how much it should offer HubSpot and whether antitrust regulators would approve the acquisition. If the acquisition plan is successful, it will be Alphabet's largest acquisition to date.

Acquiring HubSpot would allow Google to expand its reach in the fast-growing customer relationship management ( CRM ) software market, giving it a wider reach in marketing and advertising for business customers, while also helping it close a gap in its competition with cloud-computing giants Microsoft and Amazon.

Meanwhile, antitrust regulators in each country are closely monitoring large-scale transactions by companies. In fact, in December 2023, Adobe

abandoned its $20 billion acquisition of the design management tool 'Figma' because EU and UK regulators did not give their approval . There are concerns that authorities will also put a stop to Alphabet's acquisition of HubSpot.

The anonymous source said, 'Alphabet has not yet made an offer to acquire HubSpot, and there is no confirmation that an offer will be made.' A HubSpot spokesperson said, 'As a standard practice, we do not comment on rumors or speculation. We remain focused on building a great business and serving our customers.'

Following this report, HubSpot's stock price reportedly rose 5% at its closing price on April 4, 2024.