Google-owner Alphabet 'weighs mega $35bn offer for HubSpot' 

Potential acquisition of online marketing software company would be Alphabet's largest ever

A deal for HubSpot would expand Google's offerings in the booming market for customer relationship management software, enabling it to tap a wider base of business customers who spend on marketing and advertising.

Google parent Alphabet has been talking to its advisers about the possibility of making an offer for HubSpot, an online marketing software company with a market value of $35bn (€32bn), people familiar with the matter said.

If Alphabet moves ahead with a bid, it would be a rare example of a major technology company attempting a mega deal amid heightened regulatory scrutiny of the sector under President Joe Biden's administration.

The potential acquisition would be Alphabet's largest ever and allow it to put some of its cash pile, which reached almost $11bn at the end of December, to work.

Alphabet has met with Morgan Stanley investment bankers in recent days about a potential offer for HubSpot, the sources said. 

It has been discussing how much it should offer and whether antitrust regulators would clear such a tie-up, the sources added.

Alphabet has not yet submitted an offer to HubSpot and there is no certainty it will do so, the sources said. 

"As standard practice, HubSpot does not comment on rumours or speculation. We continue to focus on building a great business and serving our customers," a HubSpot spokesperson said. 

HubSpot's shares rose 11% to $693 on the news, while Alphabet shares fell by 1%. 

HubSpot, which listed in the stock market in 2014, provides marketing software to companies that typically have up to 2,000 employees. 

It generated $2.2bn of revenue in 2023 and posted a net loss of $176.3m. Despite this loss, investors are excited about the Cambridge, Massachusetts-based company's growth prospects, driving up its shares 50% in the 12 months.

A deal for HubSpot would expand Google's offerings in the booming market for customer relationship management software, enabling it to tap a wider base of business customers who spend on marketing and advertising. 

It would also be a boon for Google's cloud computing business, which is seeking to narrow its competitive gap with rivals Microsoft and Amazon. 

• Reuters