Google Parent Alphabet Reportedly Advancing Talks To Buy HubSpot as Earnings Top Estimates

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published May 09, 2024
Photo composite of Google's logo and the HubSpot logo on the facade of a brick office building.

NurPhoto / Contributor / Getty Images, hapabapa / Getty Images

Key Takeaways

  • Talks for Google parent Alphabet to acquire HubSpot are reportedly advancing.
  • Bloomberg cited people familiar with the matter who said that discussions between Alphabet and HubSpot are making progress, but that no agreement has been reached yet.
  • HubSpot reported a surprise profit and better-than-expected sales on growing demand for artificial intelligence products.

Talks for Google parent Alphabet (GOOGL) to acquire HubSpot (HUBS) are reportedly advancing, with the latest news coming as the marketing software provider's results for the first quarter beat estimates.

Talks Between Alphabet and HubSpot in Progress

Bloomberg cited people familiar with the matter who said that discussions between Alphabet and HupSpot are making progress, but that no agreement has been reached yet.

Last month, Reuters said Alphabet was meeting with Morgan Stanley (MS) investment bankers about making a bid. It noted that if a deal goes through, it would be Alphabet’s biggest acquisition ever.

Q1 Results Beat Analysts' Estimates

Thursday's news came as HubSpot reported first-quarter diluted earnings per share of 12 cents. Analysts had been anticipating a loss. Revenue increased 23.1% year-over-year to $617.4 million, better than expected.

HubSpot pointed to demand for artificial intelligence (AI) products for its strong performance. CEO Yamini Rangan said that even though the macroenvironment remains challenging, “the pace of innovation has accelerated in our industry with AI.”

HubSpot shares wavered between gains and losses in Thursday's session before finishing 0.5% lower at $587.15. They've climbed about 1% since the start of the year. Alphabet shares closed 0.3% higher at $169.96 Thursday and have gained close to 22% in 2024 so far.

CORRECTION—May 14, 2024: This article has been updated to correct the spelling of HubSpot in two instances.

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Article Sources
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  1. Bloomberg. "Alphabet Progressing in Talks to Buy HubSpot, Sources Say."

  2. Reuters. "Exclusive: Google parent Alphabet weighs offer for HubSpot."

  3. HubSpot. "HubSpot Reports Q1 2024 Results."

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