Alphabet to acquire cybersecurity firm Wiz for record-breaking sum
Alphabet has announced its largest acquisition to date, agreeing to purchase New York-based cybersecurity firm Wiz for its Google Cloud division. This follows a failed acquisition attempt last year due to valuation discrepancies.
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Wiz, an Israeli-founded cloud security startup, partners with major cloud providers like Microsoft and Amazon. Valued at $12 billion in May 2024, its valuation reportedly rose to $16 billion later in the year. The company had been pursuing an IPO after the previous acquisition talks collapsed.
“Becoming part of Google Cloud is effectively strapping a rocket to our backs,” said Wiz co-founder and CEO Assaf Rappaport, emphasizing the accelerated innovation the acquisition will enable.
The previous deal fell through due to antitrust concerns. While this acquisition will also face scrutiny, Alphabet and Wiz are hopeful that the current US administration and FTC chair Andrew Ferguson will adopt a more lenient approach.
To address potential antitrust issues, Google has confirmed that Wiz’s products will remain available across competing cloud platforms, including AWS, Azure, and Oracle Cloud. “Wiz needs to remain a multicloud platform,” Rappaport reiterated. Google Cloud Marketplace will also feature other security services.
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Google is currently involved in two antitrust lawsuits with the Justice Department regarding its search engine and advertising businesses.
The Wiz acquisition is part of Google’s strategy to strengthen its cloud security offerings. Previous acquisitions include Siemplify and Mandiant, demonstrating Google’s commitment to enhancing cloud protections, especially in light of Microsoft’s cybersecurity vulnerabilities.
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