Alphabet, the parent company of Google, has reportedly engaged in discussions with advisors regarding a potential acquisition of HubSpot, Reuters News report said.
HubSpot, an online marketing software company boasting a market value of $32 billion, has attracted Alphabet’s interest, although no formal offer has been submitted as of yet, the report said.
Sources reveal that Alphabet has been in talks with investment bankers from Morgan Stanley to explore the feasibility of such a deal.
The prospect of acquiring HubSpot presents Alphabet with an opportunity to deploy a portion of its cash reserves, which stood at $110.9 billion as of December’s end.
HubSpot, headquartered in Cambridge, Massachusetts, entered the stock market in 2014, offering marketing software tailored for companies typically employing up to 2,000 individuals. HubSpot posted a net loss of $176.3 million in 2023 against a revenue of $2.2 billion.
The potential acquisition bid comes amid a backdrop of ongoing antitrust challenges facing Google, including a significant lawsuit alleging monopolistic practices in online search. As Alphabet navigates these legal hurdles, its exploration of a strategic move towards acquiring HubSpot highlights the complex landscape of competition and consolidation within the tech industry.
