Alphabet’s Google in advanced talks to acquire cybersecurity firm Wiz for $23 billion
Alphabet, Google’s parent company, is in advanced talks to acquire fast-growing cybersecurity startup Wiz for approximately $23 billion, according to a source familiar with the matter confirmed to CNN.
The potential acquisition of Wiz, known for its cybersecurity software for cloud computing, would mark Google’s largest-ever acquisition and a significant move into cybersecurity.
Discussions between Google and Wiz commenced after the startup raised $1 billion from venture capital investors earlier this year, the source noted.
While terms of the deal are not yet finalized and talks could still fall through, The Wall Street Journal first reported on the Google-Wiz discussions.
Both Google and Wiz have not responded to CNN’s requests for comment on the matter.
If completed, this acquisition would surpass Google’s previous largest purchase of Motorola for $12.5 billion a decade ago, which resulted in a significant financial loss after its subsequent sale.
The $23 billion valuation for Wiz represents nearly double its $12 billion valuation from its recent funding round.
In March 2022, Alphabet acquired cybersecurity firm Mandiant for $5.4 billion as part of its strategy to enhance cybersecurity capabilities and strengthen its cloud computing business.
Google Cloud plays a crucial role in diversifying Alphabet’s revenue beyond its core search advertising business. Despite growth in cloud sales, Google faces stiff competition from Microsoft and Amazon in cloud services.
Dan Ives from Wedbush described the potential acquisition of Wiz as a “shot across the bow” to Microsoft and Amazon, indicating Google’s serious commitment to cybersecurity to complement its cloud offerings.
Cloud security has become increasingly critical as businesses invest heavily in migrating data to cloud platforms. Recent breaches, such as AT&T’s disclosure of a massive data breach, underscore the urgency for robust cloud security solutions.
Despite ongoing antitrust scrutiny of tech giants under the Biden administration, Ives suggested that a potential change in leadership could lead to a softer regulatory environment, potentially accelerating merger and acquisition activities among Big Tech companies.
If finalized, the acquisition would represent a significant exit for Wiz and its founders — Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik — who met during their service in Unit 8200, Israel’s cyber intelligence division.
Founded in March 2020 amid the Covid-19 pandemic, Wiz has achieved rapid growth, boasting Fortune 100 companies as clients, including BMW, Slack, and Salesforce. It also collaborates with major cloud providers like Amazon, Microsoft, and Google.
Source-CNN
