Image courtesy of 123rf.com

Alphabet Inc. (Nasdaq: GOOG), Google’s parent company, is rumored to be exploring the possibility of acquiring HubSpot (NYSE: HUBS), a leading online marketing software company with a current valuation of $32 billion.

Alphabet Inc. Could Make an Offer to Buy Hubspot

According to reports citing sources close to the matter, Alphabet has consulted with its advisers, including Morgan Stanley investment bankers, to discuss the potential offer amount and navigate the regulatory landscape.

If it materializes, the acquisition would be a significant move for Alphabet, as major technology firms have been hesitant to pursue large-scale deals due to increased regulatory scrutiny under the Biden administration. However, Alphabet’s interest in HubSpot aligns with its strategy to deploy its substantial cash reserves, which stood at $110.9 billion at the end of December.

As of the reporting, no formal offer has been submitted to HubSpot, and there is no guarantee that Alphabet will proceed with the acquisition.

No Official Confirmation, But News Propels Hubstop Stock Up 9%, Hits 52-Week High

Rumors about the potential acquisition have notably impacted HubSpot’s stock price. On the day the news broke, HubSpot’s stock increased 9.06%, opening at $630.00 and reaching a 52-week high of $693.85.

The trading volume also surged to 636,953 shares, significantly higher than the average volume of 430,508. With a market capitalization of $34.364 billion and a beta of 1.59, HubSpot’s stock has demonstrated higher volatility compared to the broader market.

The company is scheduled to announce its earnings between May 01, 2024, and May 06, 2024.

More By This Author: