Alphabet, Google’s parent company, has revealed plans to acquire Wiz for $32 billion, marking its largest acquisition to date as it intensifies its focus on cybersecurity to strengthen its position in the cloud-computing competition against Amazon.com and Microsoft. This price significantly exceeds the approximately $23 billion Google offered for Wiz last year, a deal that fell through due to antitrust concerns. The acquisition still requires regulatory and other approvals to be finalized. Previously, Google’s most significant purchase was Motorola Mobility, acquired for $12.5 billion in 2011.
The all-cash transaction will enhance Google’s cloud business with Wiz’s AI-driven cybersecurity solutions, which help companies mitigate critical risks, boosting its competitiveness in an industry increasingly driven by generative AI services like ChatGPT.
Why the Google-Wiz deal failed in 2024
In 2024, a stringent regulatory climate posed challenges for many large-scale deals. However, with a new U.S. President in office and expectations of a more lenient approach to antitrust policies under the Trump administration, Wall Street anticipates a more favorable environment for big tech mergers that might have previously been stalled.
Wiz, one of the fastest-growing software startups, provides cloud-based cybersecurity solutions and was valued at $12 billion in a funding round last May.
Why Google may want to buy Wiz
The cybersecurity sector has gained significant attention following last year’s global CrowdStrike outage, which disrupted operations across multiple industries, spurring companies to bolster their online security investments.
Wiz collaborates with major cloud providers, including Amazon Web Services, Microsoft Azure, Oracle, and Google Cloud, serving clients like Morgan Stanley, BMW, and luxury giant LVMH. For Google, acquiring Wiz aligns with its ambitions to accelerate growth in two key areas: enterprise cloud, where it trails AWS and Microsoft Azure, and security, where its offerings lack the scale and growth potential of Wiz.
The move also positions Google to balance its broader strategic investments, particularly in AI, by strengthening its cybersecurity portfolio.
In its announcement, Google emphasized, “The growing reliance on AI and cloud services has fundamentally transformed the security landscape, elevating cybersecurity’s role in countering emerging threats and safeguarding national security.”
Google Cloud CEO Thomas Kurian added, “Google Cloud and Wiz share a common goal of making cybersecurity more approachable and user-friendly for organizations of all sizes and sectors. By helping more businesses prevent cyberattacks—especially in complex software environments—we aim to reduce the costs, disruptions, and challenges posed by security breaches.”
Google-Wiz deal timeline
Google’s statement did not specify a timeline for the deal’s completion. Post-acquisition, Wiz will integrate into Google’s cloud division, though its products will remain available across all major cloud platforms.
What happens to Wiz after the acquisition
Wiz will continue operating as an independent platform, supporting all cloud providers, not exclusively Google Cloud. The company plans to expand its workforce and pursue additional acquisitions, building on efforts it has undertaken over the past year.
