HubSpot Stock Dives on Reports Alphabet Abandoning Acquisition Effort [Video]

HubSpot (HUBS) shares tumbled after reports that Google parent Alphabet (GOOGL) is no longer pursuing an acquisition of the customer relationship management (CRM) company.

Shares of HubSpot finished Wednesday recently down about 12%, leaving them down some 10% year-to-date.

Google reportedly decided to end its efforts to acquire HubSpot, according to Bloomberg reports citing sources close to the matter.

The potential deal, first reported in April, would have represented Alphabet’s largest-ever acquisition and its first multibillion-dollar deal since 2022 the roughly $5 billion purchase of cybersecurity company Mandiant. HubSpot’s market capitalization is around $25 billion.

Acquiring HubSpot would have helped Google compete with others in the CRM space like Salesforce (CRM), Microsoft (MSFT), and Oracle (ORCL). The acquisition was expected to be heavily scrutinized by the U.S. government.

HubSpot and Alphabet did not immediately respond to Investopedia’s request for comment.