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Alphabet back in talks to buy Israel’s Wiz for over $30 billion, source says

Alphabet back in talks to buy Israel’s Wiz for over $30 billion, source says

  • 17.03.2025 23:31
  • theprint.in
  • Keywords: Alphabet, Wiz

Alphabet is in advanced talks to acquire Israeli cybersecurity firm Wiz for over $30 billion, marking its largest potential acquisition. The deal comes after Wiz rejected a $23 billion offer last year due to antitrust concerns. If finalized, it would expand Alphabet's cloud infrastructure and cybersecurity capabilities while drawing regulatory scrutiny.

Alphabet NewsGOOGLsentiment_dissatisfied

Estimated market influence

Alphabet

Alphabet

Negativesentiment_dissatisfied
Analyst rating: Buy

Alphabet is in advanced negotiations to buy Wiz for over $30 billion.

Wiz

Positivesentiment_satisfied
Analyst rating: N/A

Wiz could be acquired by Alphabet, which would help expand its market reach and valuation.

Context

Analysis of Alphabet's Potential Acquisition of Wiz

Key Facts and Data Points

  • Potential Deal Value: Over $30 billion, marking Alphabet’s largest acquisition attempt to date.
  • Previous Offer: Alphabet had offered $23 billion in 2024, which was rejected by Wiz due to antitrust concerns.
  • Wiz's Valuation: Last valued at $12 billion in a private funding round in May 2024.
  • Employee Count: Wiz employs 900 people globally and plans to add 400 more in 2024.
  • Revenue: Alphabet’s cloud infrastructure business generated over $43 billion in revenue last year.

Market Implications

  • Cybersecurity Market Growth: The acquisition highlights the booming cybersecurity market, driven by increased enterprise focus on digital infrastructure protection post-CrowdStrike outage.
  • Alphabet's Strategic Expansion: The deal would position Alphabet as a major player in the cybersecurity sector, complementing its cloud infrastructure business.

Competitive Dynamics

  • Competitors: Wiz currently partners with Microsoft and Amazon, both of which could face competition if the acquisition materializes.
  • Market Positioning: The acquisition would create a cybersecurity behemoth, potentially dominating the market and drawing regulatory scrutiny.

Strategic Considerations

  • IPO vs Acquisition: Wiz had previously planned an IPO but is now considering this strategic acquisition, which could provide immediate scale and resources.
  • Technological Advantage: Wiz’s AI-driven solutions would enhance Alphabet’s cloud security offerings, making it more attractive to enterprise customers.

Regulatory and Long-Term Effects

  • Antitrust Concerns: The deal is likely to face significant regulatory scrutiny, particularly in the U.S., where antitrust policies under both Biden and Trump administrations have shown vigilance against monopolistic behavior.
  • Geopolitical Impact: Given Wiz’s Israeli origins, the acquisition could also raise geopolitical concerns, especially in light of tensions between Israel and other global tech players.

Conclusion

The potential $30+ billion acquisition of Wiz by Alphabet represents a significant strategic move to expand its cybersecurity capabilities and reinforce its cloud infrastructure business. However, it faces challenges related to antitrust approvals, competitive dynamics, and geopolitical considerations. If successful, the deal could reshape the cybersecurity landscape and further solidify Alphabet’s position as a tech giant.