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Google agrees to buy cybersecurity startup Wiz for $32 billion, FT reports

Google agrees to buy cybersecurity startup Wiz for $32 billion, FT reports

  • 18.03.2025 12:52
  • theprint.in
  • Keywords: Cybersecurity, Acquisition

Google agreed to buy cybersecurity startup Wiz for $32 billion, aiming to strengthen its cloud business with AI-powered security solutions. This deal surpasses Alphabet's previous $23 billion offer from last year and marks its largest acquisition yet.

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Estimated market influence

Google

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Analyst rating: N/A

Google is acquiring Wiz to strengthen its cloud business with AI-powered cybersecurity solutions.

Alphabet

Alphabet

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Analyst rating: Buy

Alphabet, Google's parent company, agreed to buy Wiz for $32 billion, enhancing their cloud competition against Amazon and Microsoft.

Wiz

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Analyst rating: N/A

Wiz is being acquired by Alphabet for $32 billion, which will help them avoid an IPO and focus on scaling their cybersecurity solutions.

Context

Analysis of Google's Acquisition of Wiz: Business Insights and Market Implications

Deal Overview

  • Purchase Price: $32 billion
  • Acquirer: Alphabet (Google’s parent company)
  • Target: Cybersecurity startup Wiz
  • Announcement Timing: Expected on March 18, 2025

Market Trends and Business Impact

  • Strengthening Google Cloud: The acquisition aims to bolster Google's cloud business with Wiz's AI-powered cybersecurity solutions.
  • Competitive Landscape: Positions Google to better compete with cloud leaders Amazon and Microsoft in the cybersecurity space.
  • Cybersecurity Demand: Reflects growing demand for advanced security solutions, particularly AI-driven tools, among enterprise customers.

Competitive Dynamics

  • Wiz’s Strategic Value: Wiz’s technology addresses critical risks for enterprises, making it a valuable asset in Google's cloud ecosystem.
  • Previous Deal Cancellation: Last year, Wiz had halted the deal due to antitrust concerns and planned an IPO.

Long-term Effects and Strategic Considerations

  • Alphabet’s Expansion: The $32 billion purchase marks Alphabet’s largest acquisition to date, signaling a strategic shift toward cybersecurity as a growth driver.
  • Regulatory Scrutiny: The deal may face antitrust reviews, given the size of the transaction and Alphabet’s market position.

Regulatory Implications

  • FTC Review: The U.S. Federal Trade Commission is currently reviewing mergers in the tech sector, which could impact the deal’s approval.
  • Market Concentration: The acquisition may raise concerns about further consolidation in the cybersecurity and cloud markets.

This transaction underscores the growing importance of cybersecurity in enterprise computing and highlights Google's strategic focus on expanding its cloud capabilities to compete with industry leaders.