• by Laurie Sullivan  @lauriesullivan, May 28, 2024

Google challenges Microsoft Office platform dominance through its Google Workspace, but acquiring HubSpot would make Google stronger in cloud services and a strong competitor in customer relationship management (CRM).

There has been more speculation recently that Google’s parent company Alphabet and HubSpot could come to an agreement.

HubSpot, a marketing software company, reportedly is valued at $30 billion.

If the deal goes through, HubSpot would become Alphabet’s largest acquisition, in a strategic move to bolster its competitiveness in the cloud applications market.

"It does appear that Google has aspirations to try to take market share from Microsoft in the productivity suite, and they can use HubSpot to bundle applications together for clients," Cowen analyst Derrick Wood told Reuters.

HubSpot reported in May that first-quarter 2024 domestic revenue grew 21% year-over-year. 

International revenue grew 24% in constant currency and 25% as reported, and now represents 47% of total revenue. 

The company added more than 11,700 net new customers in the quarter, including the one-time addition of nearly 800 customers from the acquisition of Clearbit.

The company also gave guidance for the second quarter and full year for 2024. For the second quarter, revenue is expected to rise about 17% in the range of $617 million to $619 million -- a significant amount that Google would add to its revenue and earnings.

Reports suggest Google is making progress in its talks to acquire HubSpot, sources familiar with the matter told Bloomberg.

At the time this article posted online, Google had not responded to requests for additional information.

Bloomberg’s contact said Alphabet has discussed terms of a potential deal with HubSpot. Although there is no certainty that the deal will move forward, “deliberations are ongoing and no agreement has been reached.”