Technology

Alphabet (GOOG, GOOGL) has been speaking to its advisers about possibly making an offer for HubSpot (HUBS), Reuters reported Thursday, citing people familiar with the matter. The technology giant had a meeting with Morgan Stanley’s (MS) investment bankers recently to discuss how much it should offer and whether a transaction would be cleared by regulators, the report said, citing the sources. There is no guarantee that Alphabet will submit a proposal to HubSpot and there is no certainty it will do so, the report added. A HubSpot spokesperson told MT Newswires in an emailed response that the company “does not comment on rumors or speculation”, while Alphabet and Morgan Stanley did not respond. Alphabet’s stock was slightly down, while HubSpot’s shares rose 2% in recent Friday premarket activity.

Alphabet’s (GOOG) reported interest in HubSpot (HUBS) is yet another reminder that the provider of cloud-based customer relationship management platform is “an asset to own,” Macquarie Capital said in a note e-mailed Friday. Reuters recently reported that the parent company of online search giant Google was considering a bid for HubSpot. “The mere mention of interest (in HubSpot) should remind investors of the reasons we have been and continue to be long-term buyers of this high-quality, best-in-class asset,” Macquarie analysts, including Frederick Havemeyer, said. With HubSpot’s current market cap likely at more than $33 billion, the “sheer size” of a potential deal is expected to warrant at least a second request from the US Department of Justice, the analysts said, citing sources familiar with regulatory norms. HubSpot shares were up more than 3% in recent trading, while Alphabet was up 1.6%.

Alphabet’s (GOOG, GOOGL) Waymo autonomous driving subsidiary and Uber Technologies’ (UBER) Uber Eats said Wednesday they have launched delivery service in Phoenix. Uber shares were up 1.5% in recent trading, while Alphabet shares down 0.3%.

Alphabet’s (GOOG) Google is planning to add fees for use of new features powered by generative artificial intelligence, the Financial Times reported Thursday, citing people familiar with the matter. Google is studying options such as adding AI-powered search features to its existing premium subscription services, the report said. The company’s engineers are currently working on the technology needed for the service, but executives have yet to greenlight its launch, the FT reported.