Google parent Alphabet has drafted in advisers as it mulls over an offer for CRM software giant HubSpot, according to Reuters’ sources.
A possible bid would likely be Alphabet’s largest acquisition ever, given HubSpot’s market cap of $33.95BN - as of April 2024.
Yet, it already has the funds freed up, with Reuters noting that Alphabet reported a "cash pile" of $110.9BN at the end of 2023.
One possible blocker is the increased regulatory scrutiny of the tech sector in the US - which may cause reservations, as Google already faces several antitrust cases.
Indeed, that has been a critical discussion point in Alphabet’s meeting with Morgan Stanley investment bankers - as per Reuter’s sources - with those conversations happening "in recent days".
However, Google could argue that the acquisition will allow them to increase competition in the sales and marketing spaces - currently under siege by Salesforce and Microsoft.
Either way, those conversations may be make or break as rumors of Google's possible bid swirl.
For its part, HubSpot has refused to share insight into its position on a potential offer. A spokesperson from the CRM stalwart stated:
As standard practice, HubSpot does not comment on rumors or speculation. We continue to focus on building a great business and serving our customers.
Morgan Stanley and Google have not yet responded to requests from CX Today for a comment.
Meanwhile, share prices at Google dropped one percent on the news. Whereas, HubSpot’s stock surged by 11 percent.
That caps a remarkable year for HubSpot, with its share price rising by more than 64 percent year-to-date - with rapid growth over the past four months.
In recording such growth, HubSpot - like market rival Salesforce - has bucked the general CX tech trend, as many market rivals stutter in a tricky macro-environment.
Even Microsoft has struggled, with Google’s chief tech rival reporting a drop in CRM bookings in January.
