HubSpot shares fall on reports that Alphabet is abandoning takeover efforts

Key conclusions

HubSpot shares fell on Wednesday following reports that Google parent company Alphabet is no longer interested in buying the customer relationship management company.
Google has suspended its efforts to buy HubSpot, according to Bloomberg.
The deal, which would be Alphabet’s largest, would help the tech giant compete in the CRM market with the likes of Salesforce, Microsoft and Oracle.

HubSpot (HUBS) shares fell on reports that Google parent company Alphabet (GOOGL) is no longer looking to acquire the customer relationship management (CRM) company.

HubSpot shares ended Wednesday down about 12%, down about 10% year to date.

According to Bloomberg, citing sources close to the matter, Google has likely decided to end its efforts to acquire HubSpot.

HubSpot would be Alphabet’s biggest acquisition ever

The potential deal, first reported in April, would be Alphabet’s largest acquisition and its first multibillion-dollar deal since 2022, buying cybersecurity company Mandiant for about $5 billion. HubSpot’s market capitalization is about $25 billion.

The acquisition of HubSpot would help Google compete with other companies in the CRM space, such as Salesforce (CRM), Microsoft (MSFT), and Oracle (ORCL). The acquisition was expected to face intense scrutiny from the U.S. government.

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