Alphabet’s offer would need to be in the $35 billion dollar range. It makes sense that the company would want to boost Google’s offerings in the highly competitive customer relationship management (CRM) software marketplace.
An acquisition of HubSpot would enable Google to tap a wider base of enterprise customers who all need to spend on marketing and advertising.
The proposed acquisition of HubSpot, if it materializes, would mark a landmark deal for Alphabet. It should be able to leverage its robust cash reserves, which stood at $110.9 billion at the end of December.
Investment bankers from Morgan Stanley are rumored to be evaluating the feasibility and regulatory implications of the transaction.
The prospect of a merger has already fueled a surge in HubSpot’s shares, indicating market enthusiasm for the potential synergy between the two tech giants. Conversely, Alphabet’s shares experienced a marginal decline amidst uncertainties surrounding the proposed acquisition.
There are several pluses in an acquisition of HubSpot. Google would, not only, be able to up its game in the CRM market, it would automatically give it access to more enterprise clients.