HubSpot Stock Dives on Reports Alphabet Abandoning Acquisition Effort

HubSpot (HUBS) shares tumbled aft reports that Google genitor Alphabet (GOOGL) is nary longer pursuing an acquisition of nan customer narration guidance (CRM) company.

Shares of HubSpot vanished Wednesday precocious down astir 12%, leaving them down immoderate 10% year-to-date.

Google reportedly decided to extremity its efforts to get HubSpot, according to Bloomberg reports citing sources adjacent to nan matter.

HubSpot Would Have Been Alphabet's Largest-Ever Acquisition

The imaginable deal, first reported successful April, would person represented Alphabet's largest-ever acquisition and its first multibillion-dollar woody since 2022 nan astir $5 cardinal acquisition of cybersecurity institution Mandiant. HubSpot's market capitalization is astir $25 billion.

Acquiring HubSpot would person helped Google compete pinch others successful nan CRM abstraction for illustration Salesforce (CRM), Microsoft (MSFT), and Oracle (ORCL). The acquisition was expected to beryllium heavy scrutinized by nan U.S. government.

HubSpot and Alphabet did not instantly respond to Investopedia's petition for comment.