HubSpot CEO Yamini Rangan speaks at the company’s Inbound conference on September 6, 2023 in Boston.
Ye Chen | Hub Point | Getty Images
pivot point Shares plunged 11% on Wednesday, the report said letter Plans to acquire the software company will not proceed.
According to Bloomberg, Alphabet was in talks with HubSpot earlier this year “but the two sides have not yet held detailed discussions on due diligence,” the report said, citing people familiar with the matter.
Representatives for HubSpot and Google’s parent company did not immediately respond to requests for comment.
Regulators in the U.S. and abroad have delayed recent proposed deals by big tech companies. Amazon Abandoned plan to acquire sweeping robot maker I am a robotit took Microsoft 20 months to complete the acquisition of game publisher Activision Blizzard.
HubSpot develops software that companies, primarily small and medium-sized businesses, can use to automate marketing and attract potential customers. The acquisition of HubSpot will help Google increase revenue from business software, cloud infrastructure and other non-cloud businesses of Alphabet.
After years of huge investments, Google’s cloud division will become profitable in 2023.
HubSpot has recently been growing faster than Google, with the company reporting revenue growth of more than 20% over the past six quarters and more than 30% prior to that. First-quarter sales grew 23% to $617.4 million.
Yamini Rangan, a former Dropbox and Workday executive, has been running HubSpot since 2021.
Since the beginning of 2022, Alphabet’s growth rate has never exceeded 20%.
Google is no stranger to competition regulation. The U.S. Department of Justice and some state attorneys general have accused Google of violating antitrust laws by reaching exclusive agreements with mobile phone manufacturers and browser companies to make its search engine the default search engine for consumers.
Even after Wednesday’s share price decline, HubSpot still has a market capitalization of $25 billion, twice the size of Google’s largest deal, its $12.5 billion acquisition of Motorola in 2011.
Read Bloomberg’s full report here.
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