From Nasdaq: 2024-05-10 06:45:00

Alphabet is reportedly in talks to acquire CRM specialist HubSpot, marking what could be the largest acquisition in the tech giant’s history. HubSpot’s successful expansion strategy saw revenue grow by 25% to $2.2 billion in 2023, driven by subscription revenue. The potential deal could give Alphabet access to more small and medium-sized businesses.
The rumored acquisition talks between Alphabet and HubSpot are still in the early stages, with discussions reportedly progressing to the point of talking terms. Reuters previously reported Google’s interest in HubSpot, raising the likelihood of ongoing negotiations. However, any deal would likely require a significant premium on HubSpot’s roughly $30.4 billion market cap.
A potential acquisition of HubSpot by Alphabet could face scrutiny from regulators, given the size of the deal. With HubSpot’s market cap suggesting a possible $40 billion acquisition premium, antitrust concerns may arise. However, the companies’ differing core operations could mitigate some of these challenges. Investors are left speculating on the impact of the rumored acquisition on both companies.
Investors in HubSpot may question the potential deal with Alphabet, preferring the company to remain independent for its long-term growth prospects in the CRM market. HubSpot’s pursuit of the growing total addressable market could lead to substantial returns for shareholders over time. Alphabet shareholders may view the possible acquisition differently, as it could provide a new growth avenue for the tech giant.



Read more at Nasdaq: Reports Suggest Google Is Still Pursuing HubSpot. Here’s What It Means for Investors.