Alphabet Inc. (GOOG), the parent company of the world’s leading search engine, Google, has reportedly sought advice on the viability of acquiring HubSpot, Inc. (HUBS), a cloud-based marketing platform.
Alphabet considering an offer for HubSpot
HubSpot’s current market cap is over $33bn. Analysts claim that if Alphabet proceeds with an offer, it would be unusual in a climate where the so-called Magnificent Seven – Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Alphabet, Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA)—are under the microscope of financial regulators.
According to Reuters, a deal like this would enable Alphabet to spend some of its $110.9bn available capital. Sources reportedly said the company recently consulted with Morgan Stanley (MS) about the pros and cons of making a bid for HubSpot.
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This business-to-business company made its market debut in 2014. In its 2023 fiscal, HubSpot accrued total revenues of $2.2bn. Over the past 12 months, the organisation’s shares climbed by 50%.
At present, Alphabet is confronted with several antitrust issues, which include significant legal charges regarding the abuse of powers as the world’s leading search engine. In 2017, the European Commission fined it €2.42bn for antitrust regulatory transgressions as it gave preference to its affiliated comparison-shopping service.
Google is also gauging how effectively generative artificial intelligence evaluates search inputs. According to reports, Google will only test a marginal percentage of search traffic and “AI overviews” will appear at the top of the results in the UK.
