Alphabet (the parent company of Google) is reportedly in advanced negotiations to acquire the cybersecurity startup – ‘Wiz.’, again. According to a report by The Wall Street Journal, the tech giant could buy Wiz for around $30 billion. If finalized, this acquisition would be Alphabet’s largest to date, surpassing its previous record of $12.5Bn it paid for Motorola Mobility in 2012.
The potential acquisition aims to strengthen Google’s cloud security capabilities, positioning it more competitively against rivals like Amazon Web Services (AWS) and Microsoft Azure. In fact, by integrating Wiz’s advanced cybersecurity solutions, Google Cloud could enhance its offerings to meet the increasing demand for secure cloud services, especially with the rise of generative AI.
Speaking of significance, Alphabet’s Google Cloud division has always been a focal point of the company’s growth strategy. In terms of numbers, Google Cloud recorded a strong financial performance in 2024, with revenue reaching $43 billion, a significant increase from $32.6 billion in 2023. This represents a 32% year-over-year growth, driven by the rising demand for AI-powered products and services, as well as a notable expansion in cybersecurity offerings. However, despite substantial growth, Google Cloud lags behind industry leaders Amazon Web Services (AWS) and Microsoft Azure.
The development is noteworthy, as this is not the first time Alphabet has shown interest in acquiring Wiz. Previously, in mid-2024, Alphabet was in talks to acquire Wiz for $23 billion. However, Wiz has turned down the takeover offer and opted to pursue an initial public offering (IPO) instead. Alphabet has backed down though, as reports indicate that Alphabet has resumed negotiations.
Founded in 2020, Wiz specializes in cloud-based cybersecurity solutions powered by artificial intelligence. The New York-headquartered company has experienced rapid growth, reportedly generating about $500 million in annual recurring revenue in 2024. Its client base includes major corporations such as Slack, BMW, and Siemens.
Meanwhile, the deal may face regulatory scrutiny due to concerns over monopolistic practices among tech giants. Alphabet is already involved in some major antitrust lawsuits. For example, the US Department of Justice (DOJ) has recently suggested that Google should sell or separate certain parts of its business, especially the Chrome browser, as a remedy for antitrust violations. As per reports, the DOJ believes that Google’s ownership of Chrome gives it an unfair advantage by steering users toward Google Search and limiting competition from other search engines (like Bing or DuckDuckGo).
Alphabet has a history of acquisitions in the cybersecurity space. In 2022, it acquired Mandiant for $5.4 billion. Meanwhile, in another latest move, Alphabet has officially separated Taara (a light-based internet project developed under its moonshot incubator, X) into an independent company.
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