Google’s parent Alphabet in discussions to acquire Hubspot: Sources

Alphabet’s acquisition plan: Google's parent company, Alphabet, is reportedly considering making an offer to acquire HubSpot, an online marketing software company valued at $32 billion, according to sources familiar with the matter.

This potential move by Alphabet comes amid increased regulatory scrutiny of major technology companies under the administration of US President Joe Biden. If pursued, this acquisition would mark a major deal for Alphabet and could help the company deploy some of its substantial cash reserves, which stood at $110.9 billion as of December.

Alphabet has engaged with investment bankers from Morgan Stanley in discussions regarding a potential offer for HubSpot. The company is reportedly deliberating on the appropriate offer amount and assessing the regulatory landscape to gauge the likelihood of antitrust approval for such a transaction.

It is important to note that Alphabet has not yet submitted an official offer to HubSpot, and there is no assurance that it will proceed with one. Requests for comment from Alphabet, HubSpot, and Morgan Stanley have not been responded to at this time.

HubSpot, founded in 2014 and based in Cambridge, Massachusetts, provides marketing software primarily to companies with up to 2,000 employees. Despite posting a net loss of $176.3 million in 2023, the company generated $2.2 billion in revenue, leading to a significant increase in its stock price over the past year.

Alphabet's potential interest in HubSpot comes as Google faces various antitrust challenges, including a significant lawsuit alleging monopolistic practices in online search.

(With Reuters inputs)