Google Eyes HubSpot Acquisition to Challenge Microsoft in Cloud Software

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Google’s parent company, Alphabet, is reportedly considering acquiring HubSpot, a marketing software company valued at $31 billion. This move would significantly boost Google’s ability to compete with Microsoft in the cloud-based business application space.

An acquisition of HubSpot would be Google’s largest and would expand its offerings for businesses. Google already competes with Microsoft’s Office suite through their Google Workspace applications. Acquiring HubSpot would position Google as a competitor in customer relationship management (CRM), a market dominated by Microsoft’s Dynamics 365 products. Analysts believe Google could bundle these applications together to create attractive offerings for clients.

HubSpot, focused on marketing software for small and medium businesses, is facing challenges due to the economic slowdown. While they’ve maintained sales growth, analysts warn that their niche market could become a disadvantage if a downturn makes it harder for their clients to secure financing. An acquisition by Google would likely benefit HubSpot by giving them access to Google’s vast resources and market reach.

Reuters

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