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Alphabet, the parent company of Google, is considering acquiring HubSpot, a leading provider of marketing and customer relationship management (CRM) software, according to industry sources. The potential acquisition could mark Google’s most significant buyout yet, potentially surpassing its 2011 acquisition of Motorola Mobility for $12.5 billion. HubSpot, having gone public in 2014, has a market capitalization nearing $35 billion.

A mega deal during a heightened antitrust period

The potential deal would come during a period of subdued merger and acquisition activity among big tech corporations, which have been contending with landmark antitrust challenges in the U.S. and Europe.

If Alphabet moves ahead with a bid, it would be a rare example of a major technology company attempting a mega deal amid heightened regulatory scrutiny of the sector under U.S. President Joe Biden’s administration.

Proposed deal to thrust Google into the CRM and adtech space

If the deal materializes, HubSpot would expand Google’s offerings into the booming CRM software market, enabling it to tap a wider base of enterprise customers who spend on marketing and advertising. The play would signify not only a substantial financial transaction but also a strategic maneuver by Google to expand into the realms of CRM and marketing automation.

By integrating Google’s ad technology with HubSpot’s marketing capabilities, the potential merger would set the stage for Google to emerge as a formidable competitor against established giants like Salesforce and Microsoft in the $71 billion CRM market. It would also mean the last of four long-lasting marketing automation firms being scooped up by giant tech leaders: Pardot (Salesforce), Marketo (Adobe), and Eloqua (Oracle).

Neither company has commented on the situation or confirmed that they are in talks.

Industry impact and business value

For IT resellers and managed service providers (MSPs), staying abreast of developments in the technology landscape is imperative. The potential acquisition of HubSpot by Alphabet underscores the evolving landscape of digital marketing and customer relationship management.

Understanding the integration of ad tech, martech, and CRM is crucial for businesses that provide IT infrastructure and managed services. The merger of marketing and automation signifies not just a technological convergence but also a paradigm shift in how businesses engage with their customers.

Tech resellers and MSPs must equip themselves with the knowledge and tools to support their clients’ evolving needs effectively. This includes maintaining an ongoing awareness of the significant transformation in the martech landscape and its far-reaching implications for businesses across industries.

See how Cisco’s acquisition of Splunk is impacting the channel as organizations navigate the complexities of digital transformation.