HubSpot Stock in Focus This Trading Week as Google's Parent Company Alphabet Allegedly Considers Acquisition of US Tech Company
The first rumors about a possible acquisition of HubSpot by Alphabet emerged at the beginning of April, when "Reuters" published a report stating that Alphabet was in talks with advisors about a bid for HubSpot. "Bloomberg" followed at the beginning of this month with a report indicating that the talks were progressing.
David Faber from "CNBC" emphasized on Tuesday that it is "absolutely right" for Alphabet to acquire HubSpot in a pure stock exchange. The acquisition deal would be significant: following a price surge on Tuesday, HubSpot has a market capitalization of nearly 33 billion USD, making it the largest acquisition in Google's corporate history.
The shareholders celebrated the rumors on Tuesday as if they were already confirmed. HubSpot's stock ended the NYSE trading with an increase of 8.39 percent at a closing price of 638.39 US dollars. In Wednesday's trading, it temporarily rose by 2.34 percent to 653.30 US dollars.
Google parent company Alphabet's stock also showed positive movement on Tuesday, rising by 0.81 percent to $176.40 on NASDAQ, but then lost 0.10 percent on Wednesday to $177.85.
HubSpot develops a platform for inbound marketing, sales, CRM, and customer service. The company was founded in 2006 by Brian Halligan and Dharmesh Shah and is headquartered in Cambridge, Massachusetts. HubSpot is primarily used by small and medium-sized businesses for marketing.
The products from HubSpot would likely fill a gap by helping Google provide its customers with marketing technology and customer relationship management tools. According to the CNBC report, this could serve to boost Google's cloud revenue.
Despite speculations from various media outlets, nothing has yet been confirmed by official sources. Alphabet did not immediately respond to CNBC's request for a statement, while HubSpot declined to comment. It remains to be seen whether this will indeed become Google's largest acquisition deal of all time.
