Alphabet (GOOGL), the parent company of Google, has spoken to its advisers about possibly making an offer to acquire online marketing software company HubSpot, according to Reuters.
Alphabet met with Morgan Stanley investment bankers on the potential deal, including how much it should offer and whether it would face scrutiny from antitrust regulators, Reuters said, citing people familiar with the matter. No offer has been submitted and there's no certainty that one will be made, the report added.
HubSpot currently commands a market capitalization of about $35 billion, which is well within Alphabet's budget as it ended its most recent quarter with approximately $110.9 billion in cash and cash equivalents. Prior to the news of the potential offer, HubSpot's market cap stood at about $32 billion.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Justice Department and the Federal Trade Commission (FTC) recently finalized new antitrust guidelines, the first update since 2010. The new guidelines are expected to have a chilling effect on mergers and acquisitions or, at the very least, expand the transactions subject to regulatory enforcement, as Kiplinger previously reported.
Google has faced its fair share of antitrust scrutiny in the past. In January 2023, the Justice Department sued Google for "monopolizing multiple digital advertising technology products." The Justice Department also sued "monopolist Google" in 2020 "to stop Google from unlawfully maintaining monopolies through anticompetitive and exclusionary practices in the search and search advertising markets."
In Thursday's trading session, HUBS stock was last seen up 8% on the news while GOOGL shares were down 0.3%.
Google weighs AI paywall option
Prior to the buzz of the potential bid for HubSpot, Google was in the news for considering charging for certain premium features powered by generative artificial intelligence (AI), the Financial Times (FT) reported.
The proposed paywall would be centered around adding certain AI-powered search features to its premium subscription services, the FT said, citing three people with knowledge of the plans.
If this were to happen, it would mark the first time Google has put any of its core product offerings behind a paywall, the FT said.
Related Content
-
Amazon Surge Sends S&P 500, Nasdaq Higher to Start November: Stock Market TodayAmazon inked a $38 billion cloud deal with OpenAI, which sent the stock to the top of the Dow Jones on Monday.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Amazon Surge Sends S&P 500, Nasdaq Higher to Start November: Stock Market Today
Amazon inked a $38 billion cloud deal with OpenAI, which sent the stock to the top of the Dow Jones on Monday.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have Today
Home Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Eight Steps to Help Get You Through the Open Enrollment Jungle at WorkWondering how to survive open enrollment this year? Arm yourself with these tools to cut through the process and get the best workplace benefits for you.
-
Seven Moves for High-Net-Worth People to Make Before End of 2025, From a Financial PlannerIt's time to focus on how they can potentially reduce their taxes, align their finances with family goals and build their financial confidence for the new year.
-
I'm a Financial Planner: These Are the Seven Tiers of Retirement Well-BeingLet's apply Maslow's hierarchy of needs to financial planning to create a guide for ranking financial priorities.
-
Why More Americans Are Redefining Retirement, Just Like I DidRetirement readiness requires more than just money. You have a lot of decisions to make about what kind of life you want to live and how to make it happen.
-
3 Major Changes Investors Must Prepare for in 2026A possible stock market bubble. Trump accounts. Tokenized stocks. These are just three developments investors need to be aware of in the coming months.
-
A Compelling Case for Why Property Investing Reigns Supreme, From a Real Estate Investing ProInvestment data show real estate's superior risk-adjusted returns and unprecedented tax advantages through strategies like 1031 exchanges and opportunity zones.
