In a surprising turn of events, Google parent Alphabet has decided to walk away from its planned acquisition of online marketing software company HubSpot, according to a Bloomberg report that cites sources familiar with the matter.
This news comes just under two months after Reuters initially reported Alphabet’s potential interest in the acquisition of HubSpot.
“Google parent Alphabet Inc. has shelved efforts to acquire HubSpot Inc., according to people with knowledge of the matter, putting to bed the prospect of a takeover that would have ranked among the biggest of the year, Bloomberg reported.
The news sent HubSpot’s shares plummeting by nearly 12% in afternoon trading, while Alphabet’s shares saw a modest rise of 1.2%. Back in April, Reuters reported that Alphabet was in discussions with advisers regarding a possible offer for HubSpot.
“Shares of HubSpot, a customer relationship management company, fell as much as 19% Wednesday in New York trading, the most since 2020. The shares closed down 12% to $492.31, giving the company a market value of about $25 billion.”
Alphabet had expressed its interest in HubSpot earlier this year, yet the two companies never advanced to detailed due diligence discussions, Bloomberg reported. Both Google and HubSpot have yet to respond to Reuters’ requests for comments.
Based in Cambridge, Massachusetts, HubSpot is renowned for its marketing, sales, and customer service software solutions. Alphabet’s interest in the company highlighted its strategic ambitions to strengthen its position in the marketing technology sector.
Had Alphabet moved forward with the acquisition, it would have demonstrated the tech giant’s commitment to navigating regulatory challenges in its quest for growth opportunities.
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