Alphabet, the parent company of Google (GOOGL.O), is reportedly considering the acquisition of marketing software firm HubSpot (HUBS.N), a move that is anticipated to draw regulatory scrutiny despite experts’ opinions that it would not stifle competition. This potential deal would compel Google to engage in a new confrontation with antitrust authorities.
Last week, Reuters disclosed that Google was contemplating a bid for HubSpot, which currently holds a market valuation of $34 billion. Google is evaluating the antitrust implications of such a move and has yet to finalize its decision on whether to proceed with an offer.
Several antitrust experts and industry analysts, interviewed and cited in various reports, believe that Google’s potential acquisition of HubSpot would unlikely pose significant competition concerns. They argue that the customer relationship management (CRM) software sector, in which HubSpot operates, is already served by multiple major players including Salesforce (CRM.N), Adobe (ADBE.O), Microsoft (MSFT.O), and Oracle (ORCL.N). As Google doesn’t currently compete in CRM, acquiring HubSpot could enhance its capabilities, leveraging Google’s cloud infrastructure to offer improved services and prices for customers.
According to Gartner, HubSpot holds a 4.9% market share in the CRM marketing software industry, focusing primarily on smaller customers, while Salesforce and Adobe each command a 15% share.
