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pivot point CNBC’s David Faber reports that shares rose 8% on Tuesday letter An all-stock offer for the software company is being considered.
Reports of the potential deal first emerged in early April, when Reuters Published a report that Alphabet was in discussions with advisors to make an acquisition offer for HubSpot. Bloomberg tracked A report earlier this month suggested talks were making progress.
“There have been numerous reports that HubSpot is in conversations with Google,” Faber said Tuesday. “My understanding is absolutely correct that Alphabet will acquire HubSpot in an all-stock deal.”
After Tuesday’s gains, HubSpot has a market capitalization of about $33 billion, making it Alphabet’s largest deal to date. Google’s largest acquisition to date is $12.5 billion Acquisition of Motorola Mobility in 2011.
HubSpot is primarily used for marketing by small and medium-sized businesses. Its products may fill a gap in helping Google provide marketing technology and customer relationship management tools to customers, potentially increasing cloud revenue.
HubSpot shares were up slightly ahead of Tuesday’s gains, trading at $643.72 as of afternoon. In 2023, the stock doubled in value.
Alphabet did not immediately respond to CNBC’s request for comment. HubSpot declined to comment.
—CNBC’s Jordan Novet contributed to this report.
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