Alphabet, the parent company of Google, is reportedly considering a bid to acquire HubSpot, an online marketing software company, currently valued at $34.2 billion. Sources familiar with the situation reveal that Alphabet is consulting with investment bank Morgan Stanley regarding the potential offer. The main considerations include the offer value and the likelihood of gaining antitrust approval amidst heightened regulatory scrutiny by U.S. President Joe Biden's administration. If Alphabet proceeds with the offer, it would be its largest acquisition to date and one of the largest in recent years among tech giants.
Founded in 2014, HubSpot provides marketing software primarily to smaller and medium-sized businesses, and its revenue in 2023 was $2.2 billion. Alphabet, which holds a cash reserve of $110.9 billion, has not yet made a formal offer to HubSpot, and there's no certainty that it will proceed with the bid. Neither Alphabet nor HubSpot has commented on these speculative reports.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appHubSpot's shares gained over 8% to $680 today following this news, as investor interest in the company rises despite its net loss of $176.3 million in 2023.
Source: xStation 5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.