Google’s parent company, Alphabet, is reportedly in talks to acquire the marketing software company HubSpot for $30 billion. This potential acquisition is seen as a strategic move by Google to compete with Microsoft in the cloud applications market.
According to Cowen analyst Derrick Wood, Google may be looking to use HubSpot to bundle apps for customers as part of its efforts to take market share from Microsoft. Despite being the third largest cloud services provider, Google lags behind Microsoft in market share, with Amazon holding a third of the market.
Reports of Google’s interest in acquiring HubSpot first surfaced in April, causing HubSpot shares to rise. However, some analysts remain skeptical about the acquisition due to concerns about weakened demand for HubSpot’s products. In the first quarter, HubSpot reported a profit of $6 million and a sales increase of more than 20% compared to the previous year.
While Google still trails behind Microsoft in the cloud market, it is making strides in the artificial intelligence (AI) space. Google is competing with other tech giants like Microsoft, Meta, and Amazon in the AI sector, with all companies releasing new AI apps and features. Google recently announced updates to its AI toolset called Gemini during its I/O developer conference, solidifying its position as a key player in AI.
The ongoing talks between Google and HubSpot have not yet resulted in an agreement, according to Bloomberg. The outcome of these discussions will be crucial in determining Google’s position in the cloud applications market and its ability to challenge Microsoft.
In summary, Google’s potential acquisition of HubSpot for $30 billion is a significant move in its strategy to compete with Microsoft in the cloud applications market. While the talks are still ongoing, the acquisition could help Google gain market share and enhance its offerings to customers. Additionally, Google’s advancements in the AI space position it as a leading player alongside other tech giants in the industry. The outcome of the acquisition will be closely watched by industry analysts and stakeholders as it could shape the competitive landscape of the cloud applications market.
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https://gizmodo.com/google-acquisition-hubspot-rival-microsoft-cloud-market-1851499164
