Mumbai-based hyperlocal search engine JustDial has denied holding acquisition talks with global Internet giant Google. Speculations emerged earlier today when an Indian media publication reported that the subsidiary of Alphabet was looking to buy JustDial’s business.
Immediately after the reports surfaced, JustDial’s share price jumped 19.79% to $8.4 (INR 549.85) from the opening price of $7.7 (INR 504.90). The intra-day gains settled at 9% reaching a share price of $7.6 (INR 500.30).
The original report stated that the two companies have been in talks for the last several months. Quoting an investment banker close to the development, the report said, “It may take some more time before the discussions are finalised.”
If the deal had materialised, it would have been Google’s second acquisition in India after Halli Labs, a Bengaluru-based AI startup that was bought by the Internet giant in July this year.
JustDial, however, has since dismissed speculations about a potential buyout, adding, “We would like to clarify that as of now there is no proposal with respect of the acquisition of our business of Just Dial by Google. Further, when there is any development to disclose, Just Dial shall do so at an appropriate time as per Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
As expected, the hyperlocal search company’s share price dropped to $7.1 (INR 467.05) once JustDial’s clarification was made public.