Exclusive Google parent company Alphabet is considering its bid for HubSpot, sources say

By Anirban Sen and Milana Vinn

(Reuters) -Google parent Alphabet has discussed with its advisers the possibility of making a bid for HubSpot, an online marketing software company with a market value of $35 billion, people familiar with the matter said.

If Alphabet goes ahead with a bid, it would be a rare example of a major tech company trying to make a mega deal amid heightened scrutiny of the sector under US President Joe Biden’s administration.

The potential acquisition would be Alphabet’s largest ever and allow the company to put to work some of its cash supply, which stood at $110.9 billion at the end of December.

Alphabet has met with investment bankers from Morgan Stanley in recent days about a possible bid for HubSpot, the sources said. There have been discussions about how much it should offer and whether antitrust regulators would approve such a partnership, the sources added.

Alphabet has not yet submitted a bid to HubSpot and there is no certainty it will do so, the sources said, requesting anonymity to discuss confidential deliberations.

Alphabet, HubSpot and Morgan Stanley did not immediately respond to requests for comment.

Shares of HubSpot rose 11% to $693 after the news in Thursday morning trading. Alphabet shares fell 1% to $153.34.

HubSpot, which went public in 2014, provides marketing software to companies with typically up to 2,000 employees.

It generated $2.2 billion in revenue in 2023 and posted a net loss of $176.3 million. Despite this loss, investors are excited about the Cambridge, Massachusetts-based company’s growth prospects, sending its shares up 50% in the past twelve months.

A deal for HubSpot would expand Google’s offering in the…

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