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Google parent Alphabet reportedly eyeing up HubSpot

(Sharecast News) - Google's parent Alphabet is reportedly considering making an offer to acquire HubSpot, an online marketing software firm valued at $35bn. The possible move, reported by Reuters citing sources familiar with the matter, would be Alphabet's largest acquisition to date, and would use a portion of its substantial cash reserves, which stood at $110.9bn at the end of December.

Reuters said the company had consulted with Morgan Stanley in recent days to evaluate the feasibility of such an offer, and to assess potential regulatory implications with regard to competition laws.

Although no formal offer had been submitted to HubSpot yet, Reuters said its sources, speaking on the condition of anonymity, said there were ongoing discussions within Alphabet about the appropriate bid amount and regulatory clearance prospects.

Alphabet, HubSpot and Morgan Stanley declined to respond.

HubSpot, founded in 2014 and based in Cambridge, Massachusetts, specialises in marketing software aimed at companies with up to 2,000 employees.

Despite reporting a net loss of $176.3m in 2023, the firm still generated $2.2bn in revenue, leading to a 50% increase in its share price over the last year.

Reporting by Josh White for Sharecast.com.

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