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

  • 18.03.2025 00:46
  • msn.com
  • Keywords: Acquisition, Cybersecurity

Alphabet is in advanced talks to acquire Israeli cybersecurity firm Wiz for over $30 billion, marking its largest potential deal. The company previously offered $23 billion but withdrew due to antitrust concerns. If finalized, the acquisition would expand Alphabet's cloud infrastructure business and strengthen its presence in the cybersecurity market.

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Alphabet

Alphabet

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Analyst rating: Buy

Alphabet is in advanced negotiations to buy Wiz for over $30 billion, which would be its largest acquisition. If successful, it could expand Alphabet's cloud infrastructure business and tap into the cybersecurity market.

Wiz

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Analyst rating: N/A

Wiz is the target of a potential acquisition by Alphabet. The deal could provide Wiz with significant financial backing and allow it to scale its operations globally, including adding 400 new employees in 2024.

Context

Analysis and Summary: Alphabet's Potential Acquisition of Wiz

Key Deal Details

  • Potential Acquisition Value: Over $30 billion
  • Last Offer Comparison: Alphabet previously offered $23 billion in July 2024, which Wiz rejected
  • Wiz's Valuation: Last valued at $12 billion in May 2024

Market Implications

  • Cybersecurity Growth: The acquisition would position Alphabet as a major player in the cybersecurity market, driven by increased enterprise focus on digital infrastructure protection.
  • Cloud Infrastructure Expansion: Wiz’s AI-powered solutions align with Alphabet’s booming cloud business, which generated over $43 billion in revenue last year.

Competitive Dynamics

  • Wiz's Partnerships: Currently works with Microsoft and Amazon, but integration with Alphabet could create competition in the cloud security space.
  • Strategic Rationale for Wiz: Focuses on identifying and mitigating risks across cloud platforms, a critical need for enterprises.

Strategic Considerations

  • Regulatory Scrutiny: Antitrust concerns remain significant, especially under shifting policies post-Trump administration.
  • Market Consolidation: The deal could lead to further consolidation in the cybersecurity industry, potentially limiting competition.

Long-Term Effects

  • Innovation and Scale: Combining Alphabet’s resources with Wiz’s AI capabilities could drive innovation in cloud security solutions.
  • Global Expansion: Wiz operates across the U.S., Europe, Asia, and Israel, with plans to hire 400 employees globally in 2024.

Regulatory Impact

  • Antitrust Concerns: The deal is likely to attract scrutiny due to its size and potential market dominance in cybersecurity.
  • Policy Uncertainty: Tariffs and antitrust policies under different administrations add uncertainty for large transactions.

Financial Metrics

  • Alphabet Cloud Revenue: Over $43 billion in 2023
  • Wiz's Customer Base: Includes major companies like Morgan Stanley and DocuSign

This acquisition, if finalized, would be one of the largest in Alphabet’s history, significantly impacting the cybersecurity and cloud markets while raising important regulatory and competitive questions.