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Google Acquires Startup Wiz for $32B to Make ‘Cybersecurity More Accessible And Simpler’

Google Acquires Startup Wiz for $32B to Make ‘Cybersecurity More Accessible And Simpler’

  • 18.03.2025 00:00
  • techrepublic.com
  • Keywords: AI, Cybersecurity

Google acquired cybersecurity startup Wiz for $32 billion to enhance cloud security using AI-powered tools. The deal aims to simplify and make cybersecurity more accessible, giving Google Cloud a competitive edge while keeping Wiz’s services available on other platforms.

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Estimated market influence

Google

Positivesentiment_satisfied
Analyst rating: N/A

Google is acquiring Wiz to enhance its cybersecurity capabilities, especially with AI integration.

Alphabet

Alphabet

Positivesentiment_satisfied
Analyst rating: Buy

Alphabet's acquisition of Wiz for $32B aims to strengthen Google Cloud's market position in cybersecurity.

Context

Analysis of Google's Acquisition of Wiz for $32B

Key Facts and Figures

  • Acquisition Value: Google (Alphabet) acquired cybersecurity startup Wiz for $32 billion, marking Alphabet’s largest acquisition to date, surpassing its previous record of $12.5 billion for Motorola Mobility in 2012.
  • Wiz’s Rejection History: Wiz initially rejected Alphabet’s offer of $23 billion in July 2024 due to antitrust concerns and operational disagreements.
  • Market Timing: The acquisition comes amid a surge in demand for secure cloud services, driven by the growth of generative AI and major security incidents like CrowdStrike’s outage.

Market Implications

  • Google Cloud’s Competitive Edge: Wiz’s AI-powered security tools could help Google Cloud gain a competitive advantage over Amazon Web Services (AWS) and Microsoft Azure.
  • Cost and Accessibility: Wiz’s products are expected to offer improved and lower-cost security solutions for multi-cloud environments, making cybersecurity more accessible.

Competitive Dynamics

  • Wiz’s Independence: Despite the acquisition, Wiz’s products will remain available across all major cloud platforms, including AWS, Azure, and Oracle Cloud.
  • Strategic Vision: Google Cloud CEO Thomas Kurian emphasized a shared vision to make cybersecurity simpler and more accessible for organizations of all sizes.

Regulatory Challenges

  • Antitrust Scrutiny: The deal is subject to regulatory approvals, with Alphabet facing potential antitrust scrutiny from the Biden administration, which has imposed strict merger review policies.
  • Policy Shifts: Investors are cautious due to ongoing antitrust battles and potential policy changes under the Trump administration, including tariffs that could increase tech costs.

Long-Term Effects

  • Wiz’s Future: Wiz CEO Assaf Rappaport had previously considered an IPO but re-engaged with buyers after Alphabet’s revised offer.
  • Market Expansion: The acquisition positions Google to strengthen its cloud security offerings and address growing concerns in the multi-cloud environment.

Press Conference Details

For more specifics about the acquisition, a press conference featuring Sundar Pichai, Thomas Kurian, Wiz CEO Assaf Rappaport, and Alphabet CFO Anat Ashkenazi will be available for viewing over the next two weeks.