Google has a wide catalog of cloud-based services for both regular users and businesses. One of the key aspects of this type of solution is cybersecurity. After all, a potential attacker could have access to sensitive data from all of the cloud provider’s partners. In line with this, Alphabet, Google’s parent company, wants to further strengthen the cybersecurity of its services with the acquisition of Wiz.
The Mountain View giant has been pursuing Wiz for some time. There was a failed first attempt in 2024 with an offer below $23 billion. However, the deal fell through due to alleged fears on the part of Wiz executives and investors regarding US antitrust regulations, according to a report by the Financial Times.
Google closes the Wiz deal for a whopping $32 billion
Since then, Wiz has appreciated in value, and now Google will have to pay $32 billion for the Israeli cybersecurity startup. Notably, in May 2024, the company’s valuation hovered around $12 billion. That figure rose to $16 billion that same year in an equity offering to employees. After the collapse of the deal with Google last year, Wiz was working on launching an IPO to raise some money.
“We expect this change to enable us to execute and innovate even faster,” reads the blog post with the official announcement. “Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company.”
Until now, Google’s largest acquisition was Motorola Mobility. The firm paid $12.5 billion for the phone maker in 2012, selling it a couple of years later to Lenovo for “just” $2.91 billion.
Wiz solutions will still be available on competing cloud products
Major tech companies like Microsoft and Amazon have turned to Wiz’s cloud-based cybersecurity solutions. It seems the firm will continue to operate in the same way it has been doing so far, so this shouldn’t change. Google stated that Wiz products will continue to be available from competing cloud-based platforms. Thus, customers of Amazon Web Services, Microsoft Azure, and Oracle Cloud will be able to continue accessing the company’s tools. This is likely necessary to avoid severe antitrust scrutiny.
Anyway, the acquisition is still subject to US FTC approval. The Federal Trade Commission, now headed by Andrew Ferguson, could be more lax with these types of acquisitions than the previous administration. That said, Ferguson has stated he will maintain a firm stance against potential monopolistic situations.
The last thing Google wants right now is another antitrust case against it. The US DOJ has filed two cases against the tech giant for its search engine and AdTech businesses. Google received an unfavorable ruling that determined its status in the search engine segment to be a monopoly. However, the company will appeal the ruling at a later date. We are still awaiting a ruling on the AdTech-related case.
