Google parent Alphabet in talks to buy cyber firm Wiz for $33 billion

Google parent Alphabet in talks to buy cyber firm Wiz for $33 billion

  • 18.03.2025 02:57
  • business-standard.com
  • Keywords: Alphabet

Alphabet is in talks to acquire cybersecurity firm Wiz for $33 billion, potentially its largest acquisition yet. The deal could help Google compete with Microsoft and Amazon in cloud computing. Wiz previously rejected a $23 billion offer from Alphabet, citing concerns over regulatory scrutiny and lengthy approval processes.

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Alphabet is considering acquiring Wiz for $33 billion, which could be their largest acquisition yet. This move aims to strengthen Google's position in the cloud-computing market by competing with Microsoft and Amazon.

Context

Analysis of Google Parent Alphabet's Potential Acquisition of Wiz

Deal Specifics

  • Potential acquisition value: $33 billion
  • Deal status: Talks ongoing, may be announced as soon as Tuesday
  • Alphabet's cloud business: Currently third in market behind Microsoft and Amazon

Strategic Implications for Alphabet (Google)

  • Market catch-up: Acquisition aims to help Google compete with Microsoft Azure and Amazon Web Services (AWS) in the cloud-computing market.
  • Cloud profitability: Google Cloud has turned profitable but faces slowing sales growth.
  • Regulatory risks: Antitrust scrutiny is likely, given Alphabet's dominance in online search and digital advertising.

Market Competition

  • Cybersecurity sector: Wiz would position Google to compete with CrowdStrike and Palo Alto Networks.
  • Cloud market dynamics: Google Cloud’s third-place ranking may mitigate regulatory concerns over market concentration.

Wiz Background

  • Company valuation: $12 billion in last funding round (2022).
  • Investors: Sequoia Capital, Index Ventures, Insight Partners, Cyberstarts.
  • Previous acquisition attempt: Rejected Alphabet’s $23 billion offer in July 2023 due to regulatory concerns and preference for independence.

Regulatory Considerations

  • Antitrust risks: Potential scrutiny from US and European competition authorities.
  • Google’s legal challenges: Ongoing antitrust cases include search monopoly and digital advertising tools.

Long-Term Effects

  • Synergies: Integration of Wiz’s cybersecurity expertise with Google Cloud and products like Google Workspace and Chrome.
  • Enterprise appeal: Enhanced security offerings could attract large enterprise clients.