Alphabet, Google’s parent company, has abandoned its pursuit of HubSpot, a customer relationship management software company, reports Bloomberg based on sources with knowledge of the situation. This ends talks for a deal that, according to Bloomberg’s data, could have been one of the largest tech acquisitions of the year 2024.
HubSpot’s stock price plummeted after the news, experiencing a one-day drop of as much as 19% – its biggest decline since 2020. The company’s shares ultimately closed down 12%, reaching $492.31 and valuing HubSpot at approximately $25 billion.
While Alphabet expressed interest in a potential deal earlier this year, as per Bloomberg’s sources, the discussions never reached the stage of in-depth due diligence. Representatives from both Alphabet and HubSpot declined to comment on the matter.
An acquisition of HubSpot would have ranked among the biggest tech purchases of this year, comparable to the ongoing $34 billion takeover of Ansys by Synopsys, according to Bloomberg. By acquiring HubSpot, which focuses on small and mid-sized businesses, Alphabet aimed to strengthen its position against competitors like Microsoft, Oracle, and Salesforce in that market segment.
Why Google gave up on HubSpot
Potential hurdles from US antitrust regulators were also a concern, reports Bloomberg. The Justice Department and Federal Trade Commission under the Biden administration have been actively opposing large mergers and acquisitions, forcing major tech companies to re-evaluate their acquisition-driven growth strategies.
HubSpot’s stock had previously reached a high of $682 in April but had already declined 21% before Wednesday’s news. In contrast, Alphabet’s shares have risen roughly 37% so far in 2024.
HubSpot’s stock price plummeted after the news, experiencing a one-day drop of as much as 19% – its biggest decline since 2020. The company’s shares ultimately closed down 12%, reaching $492.31 and valuing HubSpot at approximately $25 billion.
While Alphabet expressed interest in a potential deal earlier this year, as per Bloomberg’s sources, the discussions never reached the stage of in-depth due diligence. Representatives from both Alphabet and HubSpot declined to comment on the matter.
An acquisition of HubSpot would have ranked among the biggest tech purchases of this year, comparable to the ongoing $34 billion takeover of Ansys by Synopsys, according to Bloomberg. By acquiring HubSpot, which focuses on small and mid-sized businesses, Alphabet aimed to strengthen its position against competitors like Microsoft, Oracle, and Salesforce in that market segment.
Why Google gave up on HubSpot
Potential hurdles from US antitrust regulators were also a concern, reports Bloomberg. The Justice Department and Federal Trade Commission under the Biden administration have been actively opposing large mergers and acquisitions, forcing major tech companies to re-evaluate their acquisition-driven growth strategies.
HubSpot’s stock had previously reached a high of $682 in April but had already declined 21% before Wednesday’s news. In contrast, Alphabet’s shares have risen roughly 37% so far in 2024.
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