There has been speculation regarding how the Salesforce company will be acquired by Google. Salesforce is a very big company, so will Google buy Salesforce? The last similar rumor that was heard was way back in 2015 when Microsoft offered the CEO of Salesforce around $55 billion. However, this deal went through when a counteroffer of $70 billion was made.
Now the markets have started to predict that Google is possibly looking to buy Salesforce. The acquisition fee is expected to be around $250 billion, which is a 70% premium on their current market capitalization.
Rumors about the possible acquisition
Most recently, Google hired ex oracle SVP Thomas Kurian to lead Google cloud division as CEO. Also, it has been reported that Kurian informed its employees that Google Cloud is now looking towards a five-year plan with the main goal of achieving at least the number 2 cloud system because it is currently the 3rd best and most prominent company in the market with Microsoft behind in 4th place. According to the RBC report, Google and Thomas Kurian cannot meet these goals without any help since this goal is very hard to achieve and almost impractical. However, the only way to achieve this goal is to acquire some technology-based companies, and there’s no better company to acquire than Salesforce. Hence RBC also believes that this goal will be achieved by the year 2023 only when Google successfully takes over and acquires Salesforce.
However, these are all speculations and predictions at the moment, but this is very exciting and surprising at the same time as the acquisition would bring lots of new changes to the market and the industry as a whole. Google & Salesforce have for sure been long time partners and so naturally they have developed a nice and healthy partnership with one another. This relationship has been particularly strengthened in the recent few years. Google is one of the best and most productive search engines, while Salesforce is considered widely as the best Customer Relationship Management system. So much so that it has earned the title of “The King of CRM” in the industry today. If a possible acquisition takes place, Google will not only satisfy its goals and objectives, it would also increase the power and authority of both the companies in their respective industries.
When this rumor first resurfaced onto the scene, the share price of the company, which was originally stagnant for more than six months, is now up by 10% from 160 to at least 180. This suggests that there might actually be some truth in the rumors.
All the trends and the happenings of the market suggest that the company, the tech giant Google, might really be moving towards a solid takeover of Salesforce, one of the best technology houses in the world at the moment.