HubSpot Shares Drop 12% After Google Abandons Acquisition Plan

HubSpot Shares Drop 12% After Google Abandons Acquisition Plan

Shares of HubSpot (NYSE: HUBS) fell 12% after reports indicated that Alphabet, Google's parent company, has abandoned plans to acquire the online marketing software company. Discussions between the two companies reportedly did not advance to the due diligence stage and ended shortly after initial talks. HubSpot, which has seen rapid revenue growth exceeding 20% for the past six quarters, was expected to help Alphabet expand its business software and cloud revenue streams.

The potential acquisition, which would have been Alphabet's largest ever, faced the possibility of scrutiny from U.S. antitrust regulators. Following the news, HubSpot's market capitalization stands at approximately $25 billion. While HubSpot's shares dropped significantly, Alphabet's shares rose by 1.2%. Both companies have not yet responded to requests for comment on the matter.

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