Observed Signal · Jul 11, 2024 · M&A - Rumour · Source: CMSWire · Impact: 4/5 · Sentiment: Neutral
Google-HubSpot Acquisition Collapses
The potential acquisition of HubSpot by Google, which would have been Google's largest merger, has collapsed. According to a Bloomberg report, the sides didn't reach detailed discussions on due diligence. News of the potential deal surfaced in April, when HubSpot's market cap was near $35 billion; it has since fallen to under $26 billion, with shares dropping from $587 to $464. Industry experts note that small businesses are increasingly moving from HubSpot to cost-effective alternatives like Zoho, and a survey by Jordie van Rijn showed that 48% of HubSpot users would consider alternatives if the acquisition had occurred, citing privacy and cost concerns. The collapse highlights regulatory pressures and the dynamic nature of the CRM market.
The collapse of a potential $35B+ acquisition between a major adtech/martech player and a leading CRM platform significantly alters the competitive dynamics and signals antitrust headwinds.
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Key Takeaways & Evidence Grounding
- The Google-HubSpot acquisition talks collapsed, according to a Bloomberg report.
- The deal would have been Google's largest acquisition, exceeding the $12.5 billion Motorola Mobility purchase in 2011.
- HubSpot's market cap dropped from near $35 billion in April to under $26 billion.
- HubSpot shares fell from a high of $587 to $464.
- A survey found 48% of HubSpot users would consider alternatives post-acquisition.
Connected Companies & Entities
6 Entities mapped“The biggest merger in Google's history —and likely tech's largest this year — won't happen, according to a Bloomberg report....”
“News of a potential martech-adtech mega merger between the search giant and CRM, marketing and sales provider HubSpot, based out of Cambridg...”
“Sources told CMSWire in April this merger could have been a strong marriage between CRM, adtech and martech and put Google into the mix agai...”
“Sean Parnell of Innovaxis Marketing noted his company is turning people to Zoho from HubSpot because of what HubSpot charges for marketing c...”
“Sources told CMSWire in April this merger could have been a strong marriage between CRM, adtech and martech and put Google into the mix agai...”
“This would have been Google's largest acquisition, likely more than doubling the previous winner — $12.5 billion for Motorola Mobility for i...”
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