Google’s parent company Alphabet is breaking off takeover talks with Hubspot. The latter will suffer a severe blow on the stock market as a result.

Updated on 07.12.2024: Bloomberg reports that Alphabet no longer plans to acquire Hubspot. The stage for the detailed discussions and Due Diligence was not reached. According to the news agency, the deal was reportedly worth around $30 billion. Due to the size of the takeover, many regulators would have had to give the green light. So it won’t come to that.

As a result, Hubspot has seen a significant drop of 12 percent on the stock market. Since the news that Alphabet was seeking a takeover in April, the share price has fallen by 21 percent. Alphabet itself has already risen by 37 percent this year.

Originally published 04.05.2024: According to Reuters, Alphabet is considering a bid for online marketing software company HubSpot. This would be the biggest takeover yet for Google’s parent company, which ended the year at the end of December with $110.9 billion in its pocket. According to Reuters sources, Alphabet spoke with investment banker Morgan Stanley about the size of the offer and whether antitrust authorities would approve it.

Integrations with Google

An acquisition could mean that HubSpot’s portfolio of marketing products could strengthen that of Google. Marketing Hub, HubSpot’s leading cloud-based platform, allows marketers to create advertising campaigns, send emails to customers, and perform other related tasks. HubSpot recently added artificial intelligence features to the platform to automate certain tasks.

In addition, HubSpot also offers a platform for sellers to manage their customer relationships with Service Hub. HubSpot already includes some integrations with Google services, such as Google Ads in Marketing Hub. A possible acquisition could only improve this integration.

According to reports, Alphabet has not yet made a formal offer for HubSpot and it is not certain whether one will actually be made. Like Alphabet, HubSpot is also doing well in terms of numbers, with the company closing 2023 with a 25 percent year-on-year increase in revenue to $2.17 billion.