Google is reportedly in talks to acquire the marketing software company HubSpot for $30 billion, which would be Google’s largest acquisition ever. This move is seen as a strategy for Google to challenge Microsoft in the cloud applications market. Analysts believe that Google aims to take market share from Microsoft in the productivity suite by leveraging HubSpot to bundle apps for customers. Google currently ranks third in cloud services providers, holding less than half of Microsoft’s market share, while Amazon controls a third of the market.
The news of Google’s potential acquisition of HubSpot first surfaced in April, causing HubSpot’s shares to rise by as much as 11%. However, analysts remain skeptical of HubSpot’s financials due to weakened demand for its products, despite the company reporting a profit of $6 million in the first quarter with sales increasing over 20% compared to the previous year. Talks between Google and HubSpot are ongoing, and no agreement has been finalized yet.
In the artificial intelligence space, Google is on a more competitive level with Microsoft. Both companies, along with Meta and Amazon, have announced major AI apps and features over the past year, as well as custom AI chips. Google recently introduced updates to its AI toolset called Gemini during its I/O developer conference, solidifying its position as a prominent player in AI. Microsoft also made significant AI announcements but is now facing pressure from European regulators.
Overall, Google’s potential acquisition of HubSpot is seen as a strategic move to strengthen its position in the cloud applications market and challenge Microsoft’s dominance. As the talks between the two companies continue, the outcome remains uncertain, but it underscores the ongoing competition among Big Tech companies in the AI and cloud services sectors.
The original article was published on Quartz and provides insights into the competitive landscape of the tech industry, particularly in the areas of AI and cloud services. For the latest updates, readers can follow Gizmodo on Facebook, Twitter, and Instagram.
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https://finance.yahoo.com/news/google-set-largest-acquisition-ever-143220647.html
