Alphabet considers acquiring US$32b software firm HubSpot: Reuters
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The news: Google parent Alphabet is weighing the possibility of making an offer on online marketing software company, HubSpot, according to unnamed sources cited by Reuters.
The numbers: Shares in the NYSE-listed HubSpot climbed on the back of the news, gaining over 5% in early trading. The company has a market value of USD32 billion ($48.39 billion).
The context: Alphabet has reportedly met with Morgan Stanley investment bankers to discuss the potential offer, to assess both the size of the offer and the likelihood of a potential deal being approved by competition regulators. Antitrust regulators across the globe are cracking down on big tech companies’ market control, heightening their focus on potential M&A activity by tech giants within the sector.
Reuters' sources say that while Alphabet has not yet submitted an offer to HubSpot, the acquisition could mean that the cash-heavy Alphabet is able to put a portion of its USD110.9 billion money pile to work.
HubSpot, which provides marketing software to companies with up to 2,000 employees, generated USD2.2 billion in revenue in 2023, posting a USD176.3 million net loss.
The source: Reuters
