Google in $30B Wiz Deal Talks to Boost Cloud Security

Google in $30B Wiz Deal Talks to Boost Cloud Security

Google’s parent company, Alphabet, is in advanced discussions to acquire cybersecurity startup Wiz for over $30 billion, potentially making it the largest acquisition in the tech giant’s history, according to sources.

Alphabet previously attempted a Wiz acquisition for $23 billion in 2023, but talks collapsed due to concerns over antitrust regulations. Now, Alphabet has returned with a higher offer, aiming to strengthen its Google Cloud cybersecurity portfolio.

Founded in 2020 by former members of Israel’s elite cyber intelligence unit and now headquartered in the U.S., Wiz is one of the fastest-growing software startups. The company provides cloud security solutions to nearly half of America’s top 100 corporations and reported $500 million in annual recurring revenue in 2023, with plans to double that by 2025.

If the deal succeeds, it will be one of the biggest tech mergers of the year. However, regulatory scrutiny from the Federal Trade Commission (FTC) under President Donald Trump’s administration may pose challenges. Vice President JD Vance has previously criticized Big Tech’s dominance.

Despite regulatory hurdles, Alphabet sees Wiz as a crucial asset to enhance Google Cloud’s security capabilities, helping it compete with Microsoft Azure (21% market share) and Amazon Web Services (32% market share).

The possible acquisition, first reported by The Wall Street Journal, comes amid a slowdown in global M&A due to economic uncertainty and shifting trade policies. Wiz, last valued at $12 billion after raising $1 billion in 2022, had previously planned an IPO following its failed talks with Alphabet.

Alphabet and Wiz have both declined to comment on the ongoing negotiations.

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