Alphabet Inc., the parent company of Google, is currently in discussions to potentially acquire HubSpot Inc., a $31 billion American marketing software company. This move could greatly enhance Google’s ability to compete with Microsoft Corp. in the cloud-based application market, according to analysts and investment bankers.
Google is already offering competition to Microsoft’s Office platform with its Google Workspace products. By acquiring HubSpot, Google could also enter the customer relationship management sector, where Microsoft currently offers Dynamics 365 products. Analysts believe that Google may use HubSpot to bundle apps for customers, further challenging Microsoft in the productivity suite market.
HubSpot, known for providing marketing software to small and medium-sized businesses, is seeking ways to sustain sales growth amid a slowdown in the economy. The company’s CEO, Yamini Rangan, has noted weakened customer demand due to high interest rates during the first quarter earnings call.
The potential acquisition of HubSpot by Google presents valuable sales opportunities, especially as Google plans to phase out tracking cookies from its Chrome browser by the end of 2024. This shift would place a greater emphasis on first-party data, which HubSpot specializes in, according to Stifel analyst Parker Lane.
While talks between Alphabet and HubSpot are ongoing, a definitive agreement has not been reached yet, allowing for potential changes or other interested buyers to emerge. This potential acquisition is part of Google’s broader strategy to counter Microsoft’s dominance in the cloud computing sector, highlighting the competitive tension between the two tech giants.
The rivalry between Google and Microsoft has intensified, with both companies making strategic moves that could reshape Microsoft’s business in the cloud market. This competition underscores the significance of the cloud computing space and the stakes involved for industry leaders.
In terms of stock performance, Microsoft closed slightly higher on Thursday at $430.52, while HubSpot closed at $612.82, up 0.31% from its previous close, as reported by Benzinga Pro.
Overall, the potential acquisition of HubSpot by Google signifies a significant step in the ongoing competition between tech giants in the cloud computing and productivity software markets. This move could have a substantial impact on the industry landscape and the strategies of key players in the technology sector.
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https://www.benzinga.com/m-a/24/05/38982445/google-acquiring-hubspot-for-31b-to-take-market-share-from-microsoft-says-expert