Google's Planned Acquisition of HubSpot to Boost Cloud Business

TapTechNews May 30th news, multiple sources indicate that Google plans to acquire HubSpot company, so as to enhance the ability to compete with Microsoft in the enterprise cloud application market.

Reuters reported on April 24th that Google plans to acquire HubSpot company, and Google's parent company Alphabet met with investment bankers from Morgan Stanley to discuss the appropriate acquisition plan and whether the regulatory agency will approve the transaction.

PBOC reported on May 9th that the negotiations between Google and HubSpot are ongoing, but the transaction has not been finalized yet, and there may also be another potential buyer.

CNBC's David Faber also hinted at the possibility of the acquisition yesterday: There are continuous reports about HubSpot being in negotiations with Google. My understanding is that the all-stock transaction of Alphabet's acquisition of HubSpot is definitely true.

The current market capitalization of HubSpot company is about 30 billion US dollars (TapTechNews note: currently about 217.8 billion RMB). If the transaction is successful, it will be the largest transaction this year and even in the history of Alphabet.

Different from companies like Salesforce and Oracle that mainly target large customers, HubSpot mainly develops marketing software for small and medium-sized enterprises, so it is an ideal investment target for Google.

According to Statista, in the first quarter of 2024, the largest AWS in this field will occupy 31% of the market share, followed by 25% of Microsoft Azure and 11% of Google Cloud.

After the acquisition is completed, Alphabet, the parent company of Google, will enter the small and medium-sized customer group and provide important data for it to help simplify the integration of artificial intelligence in the native search engine.