Alphabet, Google's parent company, is eyeing HubSpot

Alphabet, Google's parent company, is considering a bid to acquire HubSpot, an online marketing software company valued at $35 billion. The move, discussed with investment bankers Morgan Stanley, would mark Alphabet's largest acquisition to date, using part of its $110.9 billion cash reserve.

The deal would enable Alphabet to expand its services in the growing customer relationship management (CRM) software sector, benefiting its cloud computing business and challenging the dominance of Salesforce and Microsoft. However, Alphabet has yet to make an offer and faces a strict regulatory environment under the Biden administration.

News of the talks sent HubSpot shares up 11%. HubSpot, founded in 2014, serves companies with up to 2,000 employees and generated $2.2 billion in revenues in 2023 despite a net loss.