Alphabet is reportedly considering its options to buy online marketing software company HubSpot.

The NYSE-listed HubSpot has a market value of around US$35 billion. If the deal does go through, it would be Alphabet’s largest-ever acquisition.

HubSpot provides marketing software to firms that usually have up to 2,000 employees and generated US$2.2 billion in revenue in 2023.

Google’s parent company certainly has the means to execute the deal. Its cash reserves stood at US$110.9 billion as of the end of last year.

Reuters said that Alphabet has consulted with Morgan Stanley investment bankers in recent days about a potential deal for HubSpot.

Google

Significantly, it has been discussing not just the amount it should offer, but also whether the deal could raise any red flags among antitrust regulators. Bear in mind that the US Department of Justice is already bringing charges against Apple, and the EU’s Digital Markets Act has come into force to prevent Big

Tech companies from flouting rules that squash competition among other companies within the EU.

Alphabet has not yet submitted any offer to HubSpot. “As standard practice, HubSpot does not comment on rumours or speculation. We continue to focus on building a great business and serving our customers,” stated a HubSpot spokesperson.

Although there isn’t any certainty on the deal, speculation of it probably contributed to HubSpot’s shares surging 11per cent to US$693 on Thursday. Its shares have already risen 50 per cent over the last 12 months.