Large companies are no strangers to throwing their money around and buying other large companies. Well, according to recent rumors and leaks, it appears that one of the largest tech companies might be gearing up to make one of its largest purchases ever. Rumors state that Google’s parent company Alphabet could buy HubSpot, a massive online marketing software company.
Right now, details about this purchase are still very scarce. So, there’s no telling if this deal will even go through. Neither HubSpot nor Alphabet have commented on the matter. So, is anyone’s guess at the moment. We will keep you updated on any new developments that arise from this potential deal.
What is HubSpot?
HubSpot is a large and flourishing marketing company that specializes in offering customer relationship management (CRM) software to companies. This company usually provides tools to firms with up to 2,000 employees. HubSpot offers a free demo on its website, so if this is something that you think you’ll be interested in, you can check it out.
Alphabet may offer to buy HubSpot for a massive amount of money
Again, details are pretty scarce. However, according to people close to the matter, HubSpot has a market value of $35 billion. So, if Alphabet does move to buy HubSpot, we expect Alphabet’s wallet to be much lighter.
Regardless of the actual price, this will be an extremely expensive purchase on Alphabet’s part. In fact, if the company does buy HubSpot, it will be the largest purchase in its history. While this is true, it’s still half of the $68.7 billion that Microsoft spent on Activision-Blizzard.
This has antitrust lawsuit written all over it
In any case, Alphabet reportedly met with Morgan Stanley investment bankers recently. The meeting was about putting forth an offer for HubSpot. Several sources say that the meeting was also about whether antitrust regulators would stamp out this deal before it could come to fruition.
Alphabet is one of the most valuable companies in the world, and making a purchase such as this will definitely catch the attention of the American government. HubSpot is a very large company; it generated $2.2 billion in revenue at the end of 2023. It’s a very large and far-reaching company, so you can bet that it has a palpable effect on the business software market. Even the news of Alphabet possibly putting an offer on it boosted its shares by 11% to $693.
So, if Alphabet is to buy this company, that may be seen as anti-competitive behavior. Google is already facing a massive-scale tipping antitrust lawsuit from the American DOJ (Department of Justice) over its search dominance. It’s very likely that antitrust regulators could step in and put a halt to this acquisition. However, if that were to happen, we are sure that Google will defend itself.
In any case, we don’t know whether Alphabet will put an offer on HubSpot. Since neither company has officially commented, we can’t say for sure. We’ll have to wait for further updates
2024-04-05 15:08:47