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Reutersreportedon Thursday that Google ’s parent troupe , Alphabet , is explore the possibility of buying Boston - based HubSpot , a CRM and marketing mechanization company with a marketplace cap of over $ 33 billion — a numeral that has been climbing on those reports .
If such a deal were to come about , the price would probably be pretty hearty , involving some significant exchange premium over the current economic value . It would have to be to propel the company to sell and become part of the search giant . It ’s deserving noting that the two society have a relationship already — a partnership to employ Google advertizement to push back sale in HubSpot — which can sometimes be the start of an acquisition treatment like this .
While Google / Alphabet has been passing acquisitive over the years , the large deal that it ’s ever made was spending$12.5 billion for Motorola Mobilityin 2011 . It later on sell it to Lenovofor just $ 2.91 billion , so it would have reason to be gun timid on a much bigger price tag . More recently the big deal involved spending $ 5.4 billion for security intelligence activity platformMandiant in 2022 . Google commonly stays under $ 3 billion , so a deal of this scope would be very much out of character for the company .
When you combine that with the nonindulgence curriculum that most tech companies have been on in late years , and a warning from Google CEO Sundar Pichai in January thatmore job cuts were amount , it ’s not the type of hatful that seems likely in a belt - tightening climate , and surely one that might be knotty to apologise to employee if those form of oculus in reality count . Yet with a vast cash horde of $ 110 billion on hand as of the end of last twelvemonth , it certainly has the cash to make the move if it wants to .
Another issue the company could confront in test to grease one’s palms HubSpot is a hostile regulative environment for large tidy sum . The U.S. , the U.K and the EU have been monitoring big deals closely these days . Some , likeAdobe ’s attemptto buy Figma for $ 20 billion did n’t make it to the finish dividing line because of private-enterprise concerns . It ’s not clean-cut that Alphabet would confront those same business organization with a CRM tool . HubSpot faces pretty herculean contender from Adobe and Salesforce , two well - capitalize business firm , so this would n’t give Google a lock on that market place by any agency , but if there ’s a peril , there ’s sure to be a outcome fee involved to put off against that , another factor the troupe would need to take into consideration .
The question is what is the likeliness of such a deal coming to fruition and what would it give the companies that they ca n’t get from the subsist partnership . As one psychoanalyst said to me , it does n’t feel likely , but you never get laid .
