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HubSpot's stock price surged 8% on Tuesday, May 28, fueled by CNBC's David Faber reporting that Google's parent company, Alphabet, is considering an all-stock acquisition offer. Faber confirmed ongoing discussions between the two tech giants, stating, "My understanding is absolutely true, all-stock deal for Alphabet to acquire HubSpot."
Talks of a potential Google-HubSpot deal have been circulating for months. HubSpot, an AI-powered customer relationship platform for small and medium businesses, aims to streamline operations across various departments like marketing, sales, content, service, and commerce.
This potential acquisition, with HubSpot's market cap reaching around US$33 billion, would be Alphabet's biggest to date, surpassing the US$12.5 billion purchase of Motorola Mobility in 2011. While no official offer had been made previously, Faber's report suggests significant progress in recent weeks.
HubSpot remained tight-lipped, with a spokesperson stating their usual policy of not commenting on speculation. However, the stock price surge reflects investor confidence in the deal's potential. If finalized, this acquisition could significantly strengthen Google's position in the cloud computing space, helping close the gap with competitors like Microsoft and Amazon.