Google’s parent company, Alphabet, is reportedly in talks to acquire HubSpot, a $30 billion marketing software company. This potential deal, which would be the largest acquisition by Google so far, is seen as part of Google’s strategy to compete with Microsoft in the cloud applications market. Analysts believe that Google may use HubSpot to bundle apps for customers in an effort to gain market share from Microsoft. However, Google currently ranks behind Microsoft in cloud services with less than half of Microsoft’s market share, while Amazon controls a third of the market.
Reports of Google’s interest in acquiring HubSpot first emerged in April, causing HubSpot shares to rise by as much as 11%. Despite this, analysts remain skeptical due to weakened demand for HubSpot’s products. In the first quarter, HubSpot made a profit of $6 million, with sales growing by over 20% compared to the previous year. Talks between Google and HubSpot are ongoing, with no agreement reached yet.
While Google still lags behind Microsoft in the cloud market, it is competitive in the artificial intelligence (AI) space. Google, Microsoft, Meta, and Amazon have all introduced major AI apps and features over the past year. Google recently released updates to its AI toolset called Gemini during its I/O developer conference, solidifying its position as a leading player in AI. Microsoft also made significant AI announcements but now faces pressure from European regulators.
In conclusion, Google’s potential acquisition of HubSpot showcases its strategic efforts to compete with Microsoft in the cloud applications market. The deal would be a significant move for Google, signaling its commitment to expanding its presence in the industry. Despite facing challenges in the cloud market, Google remains a major player in the AI space, showcasing its innovative capabilities and competition with other tech giants like Microsoft. The outcome of talks between Google and HubSpot will be closely monitored by industry analysts and investors.
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https://qz.com/google-acquisition-hubspot-rival-microsoft-cloud-market-1851496268