Street View: Alphabet's possible offer for HubSpot makes sense

Klaviyo

05/04/2024 12:41

** Google parent Alphabet  GOOGL.O  has been talking to its
advisers about the possibility of making an offer for HubSpot
 HUBS.N , an online marketing software company with a market
value of $35 billion, people familiar with the matter said
    ** Shares up ~1% at $664.85 in premarket trade
    
    MIGHT FACE ANTITRUST SCRUTINY
    ** Citigroup ("buy," PT: $767) believes a potential deal
would be tough to execute given antitrust issues
    ** Scotiabank ("sector outperform," PT: $700) says there is
a "fair argument" to be made as to why GOOGL would look at
acquiring HUBS, like integration of Ads business and Workspace
synergies, among others 
    ** Adds while the deal would make sense, antitrust
challenges may be a concern given it would be one of the
larger-sized deals in application software
    ** Oppenheimer ("outperform," PT: $725) sees the strategic
benefit of this transaction but believes it to be a "highly
unlikely outcome"  
    ** Canaccord Genuity ("buy," PT: $750) doesn't see much
ground for regulatory interference; believes there is strategic
rationale for the deal and that it would have to come at a
premium to where HubSpot is currently trading

 (Reporting by Reshma Rockie George in Bengaluru)
 ((Reshma.George@thomsonreuters.com))