Google’s parent company, Alphabet, is in advanced talks to acquire the cybersecurity startup Wiz for around $23 billion. This potential deal would mark Google’s largest acquisition and a significant move into the cybersecurity industry.
Negotiations between Google and Wiz began after the startup secured $1 billion in funding earlier this year. However, the terms of the deal have not been finalized, and there is a possibility that the talks could fall through. If this acquisition goes through, it would surpass Google’s previous largest acquisition of Motorola for $12.5 billion.
Google had ultimately sold off Motorola at a loss just two years later. Wiz’s $23 billion price tag is almost double its recent valuation of $12 billion from its latest round of funding. The potential Wiz acquisition comes as part of Alphabet’s efforts to expand its presence in the cybersecurity space, following its $5.4 billion acquisition of Mandiant in March 2022. This move aims to strengthen Google’s cloud computing business and position the company as a major player in cloud security.
The cybersecurity industry has become increasingly crucial as more companies transition their data to cloud platforms. This trend has been underscored by recent high-profile data breaches, such as the one disclosed by AT&T, which exposed call and text records due to a breach on a third-party cloud platform. The negotiations between Google and Wiz are taking place amidst heightened antitrust scrutiny facing big tech companies.
Despite this, some analysts believe that the regulatory environment could change if there is a shift in the political landscape, potentially leading to a more lenient approach to mergers and acquisitions within the tech industry. If the acquisition is finalized, it would mark a significant milestone for Wiz and its founders, who have seen rapid growth since the company’s establishment in March 2020. Wiz now boasts prominent clients such as BMW, Slack, and Salesforce, with 40% of Fortune 100 companies using its cybersecurity software.
Notably, Wiz was founded by former members of Unit 8200, the cyber intelligence division of the Israel Defense Forces, and has quickly established itself as a major player in the cybersecurity industry.
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