Alphabet to buy Hubspot

Google parent Alphabet is reportedly contemplating acquiring online marketing software company Hubspot. Hubspot is currently valued at $34 billion, such a move would mark Google's largest acquisition to date, far surpassing its previous purchases of Motorola for $12.5 billion in 2011 and cybersecurity firm Mandiant for $5.4 billion in 2022.

Google's substantial cash reserve of $110.9 billion makes the prospect of a deal quite feasible. While no formal offer has been extended, analysts speculate that an acquisition of Hubspot could cost up to $40 billion. The biggest hurdle to a deal would be getting regulatory approval.

Following the news, Hubspot shares experienced a significant uptick, rising as much as 11% before closing up 5% on the day. The software marketing company reported a net loss of $176.3 million in 2023 on $2.2 billion of revenue, leading to a notable 64% increase in its share price over the past year.