Alphabet decided not to pursue the acquisition of HubSpot weeks ago, according to Reuters. Initial discussions between Alphabet and HubSpot did not progress to due diligence and ended shortly after they began.

Following the news, HubSpot's shares dropped by 12%, while Alphabet's shares increased by 1.2%. In April, Reuters reported that Alphabet was considering making an offer for HubSpot, which is currently valued at $25 billion. The potential deal would have been Alphabet's largest and could have faced scrutiny from antitrust regulators.

HubSpot specializes in inbound marketing software for small and medium-sized businesses. CEO Yamini Rangan noted in May that customer demand had weakened due to economic concerns. Bloomberg also reported that Google is no longer in talks to acquire HubSpot.