Alphabet Abandons Acquisition for HubSpot

July 10, 2024in Salesforce

Alphabet Abandons Acquisition Plans for HubSpot

The integration between Salesforce and Hubspot could have changed drastically. The HubSpot-Salesforce integration allows you to pass data between HubSpot and Salesforce seamlessly, and maintain consistency between your marketing and sales teams.

Current HubSpot Google integration includes: ability to log emails sent from Gmail into HubSpot CRM with one click, so your team spends less time on busy work and more time doing what they do best. HubSpot integrates with your Google Calendar to help you book more meetings in less time.

Google parent Alphabet has abandoned its plans to acquire HubSpot, according to sources familiar with the matter. This decision puts to rest what would have been one of the year’s largest takeovers.

HubSpot, Inc. is an American developer and marketer of software products for inbound marketing, sales, and customer service. HubSpot was founded by Brian Halligan and Dharmesh Shah in 2006.

The talks between Alphabet and HubSpot never progressed to due diligence and fell apart shortly after the companies held initial discussions on a potential deal, the source said, on condition of anonymity to discuss confidential matters.

HubSpot’s shares, a customer relationship management company, plummeted by as much as 19 percent on Wednesday (Jul 10) in New York trading, marking the most significant drop since 2020. The shares closed down 12 percent at $492.31, giving the company a market value of approximately $25 billion.

Earlier this year, Alphabet had expressed interest in a potential deal with HubSpot. However, the two sides never progressed to detailed discussions or due diligence, said the sources, who requested anonymity due to the confidentiality of the matter.

Representatives for Alphabet did not immediately comment. A HubSpot spokesperson also declined to comment.

Any acquisition of HubSpot would have been among the largest tech deals of the year, comparable to Synopsys’s pending $34 billion acquisition of Ansys, according to data compiled by Bloomberg.

HubSpot recently suffered a hack attack.

HubSpot, which builds marketing software for small and medium-sized businesses, has specialized in so-called inbound marketing, where consumers start engagement with a brand. HubSpot customers apply its software to make advertising content that consumers can click on.

CEO Yamini Rangan said in May on HubSpot’s financial results call that customer demand had weakened, as small businesses worried about the economic impact of high interest rates.

Acquiring Cambridge, Massachusetts-based HubSpot, which caters to small and midsize enterprises, would have bolstered Alphabet’s competitiveness against rivals like Microsoft, Oracle, and Salesforce.

HubSpot shares fell Wednesday after reports that Google parent company Alphabet is no longer interested in buying the customer relationship management company.
Google stopped its efforts to buy HubSpot, according to reporting from Bloomberg.
The deal, which would have been Alphabet’s largest, would have helped the tech giant compete in the CRM space alogside Salesforce, Microsoft and Oracle.