Google parent Alphabet puts HubSpot acquisition on hold as HubSpot stock sees biggest drop since 2020

It was reported that Alphabet was accelerating its efforts to acquire online marketing software developer HubSpot , but it was revealed that the effort has been temporarily put on hold. This report has caused HubSpot's stock price to fall by the largest amount since 2020.

Alphabet Shelves Its Interest in HubSpot (GOOGL, HUBS) - Bloomberg
https://www.bloomberg.com/news/articles/2024-07-10/google-parent-alphabet-is-said-to-shelve-its-interest-in-hubspot

Google Stock: HubSpot Falls As Alphabet Walks | Investor's Business Daily
https://www.investors.com/news/technology/google-stock-hubs-stock-acquisition-talks/

Google parent Alphabet walked away from HubSpot deal weeks ago, source says | Reuters
https://www.reuters.com/technology/google-parent-alphabet-shelves-interest-hubspot-bloomberg-news-reports-2024-07-10/

HubSpot shares plunge 12% on report that Alphabet is shelving interest
https://www.cnbc.com/2024/07/10/hubspot-shares-plunge-16percent-on-report-that-alphabet-is-shelving-interest.html

HubSpot is a company that provides marketing software to companies with about 2,000 employees. It went public on the stock market in 2014 and earned $2.2 billion (about 360 billion yen) in revenue in 2023. Investors who expected growth increased the stock price by about 50% in 12 months, and the market capitalization as of April 2024 was calculated to be $35 billion (about 5.7 trillion yen).

It was reported in April 2024 that Alphabet was considering acquiring HubSpot. If the acquisition was successful, it would help Google close the gap with competitors Microsoft and Amazon in the fast-growing customer relationship management ( CRM ) software market.

Google's parent company Alphabet is considering acquiring marketing tool HubSpot, which would be its largest acquisition to date - GIGAZINE

However, Bloomberg has learned from sources that Alphabet has put its plans to acquire HubSpot on hold, making it clear that one of the company's biggest acquisitions will not happen in 2024. This news caused HubSpot's stock price to fall by as much as 21%, the biggest drop since 2020. This brings HubSpot's market capitalization to about $25 billion (about 4 trillion yen).

Alphabet and HubSpot have not even reached the stage of detailed due diligence discussions, according to people familiar with the matter. Both Alphabet and HubSpot declined to respond to Bloomberg's requests for comment.

According to Bloomberg, if Alphabet's acquisition of HubSpot were to be realized, it would be the largest acquisition in the technology industry in 2024. At the time of writing, the largest acquisition in the technology industry in 2024 was the acquisition of ANSYS by Synopsys, the largest semiconductor EDA company, announced in January 2024. The acquisition price was $34 billion (approximately 5.5 trillion yen).

Alphabet's acquisition of HubSpot was also at risk of falling through due to antitrust scrutiny: the Department of Justice and the Federal Trade Commission have been active in opposing large acquisitions in recent years, forcing large tech companies to rethink their plans for growth through acquisitions.