Should you buy HubSpot or not? That's the question for you, Alphabet.
Google and YouTube's parent company Alphabet are in talks over a major acquisition of the Boston-based CX technology vendor valued at nearly $35 billion, according to an exclusive report from Reuters. He also reported that he had not made any proposals. Go to HubSpot.
Neither Google nor HubSpot have commented on the matter.
Google offers many cloud services used in marketing, e-commerce, CRM, and customer service, but they don't have actual applications or desktop interfaces. HubSpot offers them for customer service, marketing, and CRM. On the e-commerce side, HubSpot doesn't have a full e-commerce application, but it does have integrations with major companies like Shopify and payments through Stripe.
Launched in 2006, HubSpot started out as a marketing platform and added CRM and customer service tools in recent years. Perhaps Alphabet's biggest asset with HubSpot is its nearly 20 years of marketing data and marketing campaign performance measurement to drive the development of AI services and chatbots.
Michael Giacconi, CEO and founder of Button, a data tracking platform for e-commerce companies and those operating affiliate models, speculates that this acquisition may indeed be all about data. HubSpot generates a rich set of first-party conversion data that shows sales by specific ads, links, and influencers. Their value is increasing by the day as Google deprecates third-party cookies and regulators look to protect consumer data.
“Companies powered by ad-based revenue models will need to strengthen their sources of conversion data and first-party data to compete in the privacy-first digital economy imposed by regulators and Apple,” Giacconi said. Stated.
Alphabet may be looking for ways to make Google and YouTube ad sales even more successful after a disappointing fourth quarter of 2023. The elimination of third-party cookies and oversight by antitrust authorities could also explain why Alphabet wants to invest in advertising infrastructure. There is also increasing competition from other advertising platforms such as Meta, TikTok, and Amazon.
The question is whether regulators will allow it. Constellation Research analyst Liz Miller said a sale could be difficult. By owning the world's largest online advertising platform, which accounts for most of Alphabet's revenue, for Google search, which is under investigation for monopolistic practices, and then purchasing software to control inbound customer relationships, There is also the potential for large profits to be made. Use “flag” to pass regulatory muster.
There may also be questions about whether HubSpot customers receive preferential treatment or access to different analytics tools than other marketing and advertising technology customers, he added.
“I don't necessarily think this move is the right move for Google, and frankly I don't think it's the right move for HubSpot,” Miller said. “It's one thing for Google to make an offer, it's another thing for HubSpot to say yes in this environment. HubSpot is opening itself up to regulatory scrutiny, but will the board want that?”
Don Fluckinger is a senior news writer for TechTarget Editorial. He is responsible for customer experience, digital experience management, and end-user computing. Any tips? send him an email.