Google parent Alphabet Inc. (NASDAQ:GOOGL) is exploring the acquisition of HubSpot Inc. (NYSE:HUBS), a U.S. marketing software maker valued at $31 billion. The acquisition would significantly enhance Google’s ability to compete with Microsoft Corp. (NASDAQ:MSFT) in the cloud-based applications market,
What Happened: Analysts and investment bankers have noted that this would be Google’s largest deal, expanding its business-oriented products and applications, Reuters reported on Thursday.
Google is already challenging Microsoft’s Office platform with its Google Workspace offerings. Acquiring HubSpot would position Google as a competitor in the customer relationship management sector, where Microsoft offers Dynamics 365 products, according to Cowen analyst Derrick Wood.
“It does appear that Google has aspirations to try to take market share from Microsoft in the productivity suite, and they can use HubSpot to bundle applications together for clients,” Wood said.
HubSpot, which provides marketing software for small and ...