Google parent Alphabet in talks to buy cloud security firm Wiz for $43.9 billion

Google parent Alphabet in talks to buy cloud security firm Wiz for $43.9 billion

  • 17.03.2025 23:45
  • straitstimes.com
  • Keywords: Acquisition, Cybersecurity

Alphabet is in advanced talks to acquire cybersecurity firm Wiz for over $30 billion, marking its largest potential deal. The acquisition would expand Alphabet's cloud security capabilities and bolster its cloud infrastructure business, though it faces antitrust scrutiny following a previous failed attempt.

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Estimated market influence

Alphabet Inc.

Alphabet Inc.

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Analyst rating: Buy

Alphabet is in talks to acquire Wiz, which could expand its cloud business.

Wiz

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Analyst rating: N/A

Wiz's acquisition by Alphabet would likely increase its market reach and valuation.

Context

Analysis of Google Parent Alphabet's Potential Acquisition of Wiz

Deal Overview

  • Potential acquisition value: Over $40 billion, marking Alphabet’s largest potential deal to date.
  • Previous offer details: A prior offer of approximately $30 billion was called off in July 2023 due to antitrust concerns.
  • Deal status: Negotiations are ongoing, with no public confirmation from either company as of March 17, 2025.

Business Implications

  • Market expansion: The acquisition would allow Alphabet to strengthen its position in the cybersecurity market and expand its cloud infrastructure business, which generated $43 billion in revenue in 2024.
  • Cybersecurity demand: Interest in the sector has surged post the global CrowdStrike outage, driving enterprise focus on digital infrastructure protection.

Competitive Landscape

  • Wiz’s offerings: Provides AI-powered cloud-based cybersecurity solutions, working with major cloud providers like Microsoft and Amazon.
  • Customer base: Includes prominent firms such as Morgan Stanley and DocuSign, with a workforce of 900 employees across global regions.
  • Growth plans: Wiz aims to add 400 new jobs globally in 2024.

Strategic Considerations

  • Regulatory risks: The deal is likely to face antitrust scrutiny, especially under the Biden administration’s policies.
  • Antitrust concerns: Alphabet’s size and market dominance could pose challenges for regulatory approval.

Long-Term Effects

  • Industry impact: A successful acquisition would set a precedent for mergers in the cybersecurity sector, potentially leading to consolidation.
  • Global influence: The deal could further entrench Alphabet as a dominant player in both cloud infrastructure and cybersecurity.