- Today in Digital Marketing
- Posts
- Will Google's Biggest Acquisition Shake Up the Marketing Industry?
Will Google's Biggest Acquisition Shake Up the Marketing Industry?
Google's parent company is said to be ready to buy Hubspot. What will that mean for marketers?
Google's Biggest Acquisition Ever Will Shake Up the Marketing Industry
If Google's parent company does indeed buy Hubspot, what will that mean for marketers?
by Tod Maffin (email • LinkedIn • social media)
Today's News
HUBSPOT • Google is Close to Buying the Platform
Google’s parent company Alphabet is said to be close buying Hubspot — the large marketing automation platform. If it goes through, it will be the largest acquisition in its history. Hubspot is worth about $30 billion.
(By way of comparison, Google bought YouTube for about $1.6 billion in stock. Pretty good deal considering YouTube brought in more than $30 billion in revenue last year alone.)
Why Hubspot?
Why do they want Hubspot? To compete with Microsoft’s lead in the productivity suite space. Google is in third place among cloud services, but is well behind the first two. Amazon controls about a third of the market, and Microsoft holds more than twice what Alphabet has.
Reports of Google’s potential acquisition first surfaced in April, sending HubSpot shares up as much as 11%.
HubSpot’s financials keep getting better, though analysts are skeptical over weakened demand for its products.
The company swung to a profit of $6 million in the first quarter, with sales surging more than 20% from the prior year.
Google’s talks with HubSpot are “ongoing” and no deal has been reached, according to Bloomberg.
Google is also catching up with Microsoft in the AI race, recently unveiling many updates to its Gemini AI tools.
Both companies face scrutiny from European regulators.
Reply