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Google might acquire HubSpot. Here's why Microsoft should worry

May 23, 2024 · fastcompany.com
Google might acquire HubSpot. Here's why Microsoft should worry
Google's parent company, Alphabet, is considering acquiring HubSpot, a US marketing software maker valued at $31 billion, to enhance its competitiveness against Microsoft in the cloud-based applications market. The acquisition would be Google's largest and would expand its business-oriented products and applications. It would also position Google as a competitor in the customer relationship management sector, currently dominated by Microsoft's Dynamics 365 products.

However, the potential acquisition could face regulatory challenges due to increasing concerns about tech giants expanding through acquisitions. Despite this, some analysts believe Google might decide the benefits of the deal outweigh the potential regulatory issues. The acquisition would also provide Google with a wealth of valuable sales leads, particularly as it plans to remove tracking applications, known as "cookies", from its Chrome browser in 2024.

Key takeaways

  • Google's parent company, Alphabet, is considering acquiring HubSpot, a U.S. marketing software maker, to boost its ability to compete against Microsoft in offering cloud-based applications to companies.
  • Acquiring HubSpot would make Google a competitor in the customer relationship management sector, which Microsoft caters to with its Dynamics 365 products.
  • HubSpot specializes in 'inbound marketing,' which relies on search engines and social media to attract customers, offering many synergies with Google.
  • Google's acquisition of HubSpot could face challenges from antitrust regulators due to concerns about technology giants getting bigger through acquisitions.
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