Following news that Alphabet is abandoning its intentions to acquire the software startup, HubSpot’s stock fell 12% on Wednesday.
Alphabet and HubSpot had negotiations early this year, which cited people with knowledge of the situation as saying, “but the sides didn’t reach a point of detailed discussions about due diligence.”
Comment inquiries were not immediately answered by representatives of HubSpot or Alphabet, the parent company of Google.
Large tech businesses have recently put up proposals for agreements, but regulators both domestically and internationally have fought back.
The company iRobot, which makes robot vacuums, was abandoned by Amazon, and Activision Blizzard, the publisher of video games, took 20 months for Microsoft to complete its acquisition.
Mostly small and medium-sized enterprises (SMBs) use software developed by HubSpot to automate marketing and connect with potential clients.
Adding HubSpot to the Alphabet portfolio would have allowed Google to increase its revenue from cloud infrastructure, business software, and other non-cloud industries.
Source (CNBC)
