After months of speculation and one failed attempt earlier, Google has now confirmed it is acquiring Wiz for a staggering $32Bn, marking its largest acquisition till date. Wiz will join Google Cloud. This acquisition would be Google’s largest to date, surpassing its previous record of $12.5Bn it paid for Motorola Mobility in 2012.
The 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.
Google also confirmed that Wiz’s products will continue to work and be available across all major clouds, including Amazon Web Services, Microsoft Azure, and Oracle Cloud platforms, and will be offered to customers through an array of partner security solutions. Google Cloud will also continue to offer customers wide choice through a variety of partner security solutions available in the Google Cloud Marketplace.
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. The company, as and when the acquisition closes, is expected to be near $1Bn in ARR.
Meanwhile, the deal could face regulatory scrutiny due to concerns over monopolistic practices among tech giants, though Trump has rather leaned towards tech in his policy stances so far. 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.
Content originally published on The Tech Media – Global technology news, latest gadget news and breaking tech news.
