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Google parent Alphabet is “exploring the possibility of acquiring HubSpot”

Google parent Alphabet has been seeking advice and exploring options to acquire HubSpot, the $35 billion marketing software company.

Alphabet has met with investment bankers at Morgan Stanley to seek advice on a purchase amount and discuss the possibility of antitrust regulators allowing such a takeover, people familiar with the matter said.

If the acquisition goes ahead, it would be Alphabet’s largest acquisition to date. The tech giant currently has more than $110 billion in cash reserves, so it may be keen to tap into this. Despite its reserves, Google laid off hundreds of employees earlier this year.

No formal offer has been made, and neither Google nor Morgan Stanley commented on the matter. A HubSpot spokesperson said: “As is standard practice, HubSpot does not comment on rumors or speculation. We remain focused on building a great business and serving our customers.”

Alphabet has a history of antitrust regulations

If the acquisition goes ahead, it could be beneficial to both parties. Alphabet will gain access to HubSpot’s marketing and customer relationship management (CRM) software, giving it access to enterprise customers who have abandoned Google products in favor of products with these features. HubSpot will gain access to Google’s expanding artificial intelligence (AI) offerings and hopes to extend them into its advertising products.

The question remains whether antitrust regulators would allow such an acquisition to happen, especially since Google is currently embroiled in an antitrust lawsuit brought by news media publisher Gannett Co. Google was also sued by the U.S. Department of Justice in 2023 for its monopoly in the digital field. Adtech, claiming that its serial acquisitions were a big reason why they were able to gain a monopoly.

U.S. regulators are on high alert for Google’s moves to clamp down on a monopoly before it forms, so if this deal does happen, it will have to be handled with extreme caution. So far, there’s no official word, and this could just be a case of Google exploring its options in the market.

Featured Image: Alphabet

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