HubSpot’s Acquisition by Alphabet Is Inevitable

Alphabet’s proposed takeover of HubSpot may be coming to an end as sources say the company has dropped its bid, according to a report Reuters Agency.

A person familiar with the matter said acquisition talks never progressed beyond the due diligence phase and began to fall apart weeks earlier.

The source, who did not reveal his identity or links to either company, said the deal collapsed shortly after initial talks concluded.

News of the deal plans first emerged in April of this year, when people familiar with the matter said Alphabet was in talks with advisers about potentially making an offer.

HubSpot had a market value of $35 billion at the time, and while it is lower now, if the deal had gone through it would still have been the largest acquisition in Alphabet’s history.

According to sources at the time, Alphabet met with investment bankers from Morgan Stanley about a potential offer, reportedly discussing the size of the offer for HubSpot.

Alphabet was also reportedly considering whether antitrust regulators would look into the deal, given its scale and the fact that regulators have become increasingly vicious about cracking down on mergers.

“As is standard practice, HubSpot does not comment on rumors or speculation. We remain focused on building a great business and serving our customers,” a HubSpot spokesperson said at the time.

Alphabet did not make any offer at that time and now, sources have confirmed, it appears the deal will not proceed any further.

HubSpot acquisition would give Alphabet a data goldmine

The motives behind the acquisition are not entirely clear due to the unofficial nature of the transaction, although the acquisition of Alphabet could expand Google’s offering in the customer relationship management (CRM) software market.

Likewise, it would expand Google’s cloud computing capabilities while giving the company access to the massive amounts of data it needs to boost advertising revenue.

HubSpot has a ton of conversion data that allows it to tie sales to specific ads. For a company like Google, that could be worth a fair amount.

In the statement submitted ITPro At the time, Tyler Jordan, CEO of B2B-focused marketing agency JDM, said the deal would be lucrative for Google advertisers.

“This acquisition would enable B2B companies to scale faster by closing the loop on improved conversions and offline conversion tracking,” he said. “Which is an advanced measurement initiative that is currently unclear and does not lead to clear paths to growth.”