Alphabet reportedly in talks to acquire 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. Alphabet has already met with investment bankers in recent days regarding the deal. These discussions are reportedly around the offer price tag and any antitrust regulation hurdles that would need to be cleared.

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

Cambridge, Massachusetts-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.

Google, like other tech giants such as Microsoft and Apple, are facing multiple antitrust challenges around the globe. Google has also been accused 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.