Google Parent Alphabet Eyes HubSpot Acquisition: Report

Google’s parent company is reportedly looking to make a purchase offer for Massachusetts-based CRM specialist HubSpot.

Google’s parent company Alphabet is reportedly in talks about making an offer to acquire HubSpot, the owner of a popular customer relationship management (CRM) platform.

Reuters reports that Alphabet is looking to make a purchase offer for HubSpot and has already met with investment bankers in recent days regarding the deal, citing sources familiar with the matter.

These discussions are reportedly around the offer price tag and any antitrust regulation hurdles that would need to be cleared. Alphabet and HubSpot did not respond to CRN’s request for comment on the matter by press time.

HubSpot Sales Total Over $2 billion

Cambridge, Mass.-based HubSpot provides a unified software platform that delivers connections for customer-facing teams that includes AI-powered engagement hubs, a smart CRM, and a connected ecosystem with over 1,500 application marketplace integrations.

The company generated $2.17 billion in revenue in calendar year 2023, along with an operational loss of $176 million. Subscription revenue for HubSpot hit $2.12 billion in 2023, up 26 percent year over year.

Alphabet generated a whopping $307 billion in sales during 2023, up from $282 billion in 2022.

The tech giant has total cash of approximately $111 billion as of the end of calendar year 2023, according to an Alphabet press release. The company is spending billions each year in new data center projects to fuel its cloud computing and AI growth.

News Comes During Antitrust Lawsuits

Google, like other tech giants such as Microsoft and Apple, are facing multiple antitrust challenges around the globe including a lawsuit accusing Google of abusing its online search leadership position with Google Search.

Additionally, the European Commission recently opened several investigations into Google, Apple and Meta regarding new EU antitrust laws, which could see each company paying billions in fines. If found guilty, the EU commission can fine each company up to 10 percent of its annual global revenue.

HubSpot stock is up more than 8 percent today, trading at $677.18 per share at 10:57 a.m. EDT.