HubSpot Stock Dives on Reports Alphabet Abandoning Acquisition Effort

  • September 29, 2024
  • Category: Blockchain
HubSpot Stock Dives on Reports Alphabet Abandoning Acquisition Effort
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HubSpot Stock Dives on Reports Alphabet Abandoning Acquisition Effort

Key Takeaways

  • HubSpot shares fell Wednesday after reports that Google parent company Alphabet is no longer interested in buying the customer relationship management company.
  • Google stopped its efforts to buy HubSpot, according to reporting from Bloomberg.
  • The deal, which would have been Alphabet’s largest, would have helped the tech giant compete in the CRM space alogside Salesforce, Microsoft and Oracle.

HubSpot ( HUBS ) shares tumbled after reports that Google parent Alphabet ( GOOGL ) is no longer pursuing an acquisition of the customer relationship management (CRM) company.

Shares of HubSpot finished Wednesday recently down about 12%, leaving them down some 10% year-to-date.

Google reportedly decided to end its efforts to acquire HubSpot, according to Bloomberg reports citing sources close to the matter.

HubSpot Would Have Been Alphabet’s Largest-Ever Acquisition

The potential deal, first reported in April , would have represented Alphabet’s largest-ever acquisition and its first multibillion-dollar deal since 2022 the roughly $5 billion purchase of cybersecurity company Mandiant. HubSpot’s market capitalization is around $25 billion.

Acquiring HubSpot would have helped Google compete with others in the CRM space like Salesforce ( CRM ), Microsoft ( MSFT ), and Oracle ( ORCL ). The acquisition was expected to be heavily scrutinized by the U.S. government.

HubSpot and Alphabet did not immediately respond to Investopedia’s request for comment.

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