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(Reuters) – Google parent Alphabet has been talking to its advisers about the possibility of making an offer for HubSpot, an online marketing software company with a market value of USD $35 billion, people familiar with the matter said.

If Alphabet moves ahead with a bid, it would be a rare example of a major technology company attempting a mega deal amid heightened regulatory scrutiny of the sector under U.S. President Joe Biden’s administration.

The potential acquisition would be Alphabet’s largest ever and allow it to put some of its cash pile, which reached USD $110.9 billion at the end of December, to work.

Alphabet has met with investment banker Morgan Stanley in recent days about a potential offer for the software company, the sources said. It has been discussing how much it should offer and whether antitrust regulators would clear such a tie-up, the sources added.

No Offer for HubSpot Yet

Alphabet has not yet submitted an offer to HubSpot and there is no certainty it will do so, the sources said, requesting anonymity to discuss confidential deliberations.

“As standard practice, HubSpot does not comment on rumors or speculation. We continue to focus on building a great business and serving our customers,” a HubSpot spokesperson said.

Alphabet and Morgan Stanley did not immediately respond to requests for comment.

HubSpot’s shares rose 11% to USD $693 on the news on Thursday. Alphabet shares were down 1% at USD $153.34.

HubSpot, which listed in the stock market in 2014, provides marketing software to companies that typically have up to 2,000 employees.

It generated USD $2.2 billion of revenue in 2023 and posted a net loss of $176.3 million. Despite this loss, investors are excited about the Cambridge, Massachusetts-based company’s growth prospects, driving up its shares 50% in the 12 months.

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