Google In Fresh Bid To Acquire Cybersecurity Firm Wiz For A$47 Billion

18.03.2025 03:16
channelnews.com.au
Keywords: Acquisition Attempt, Antitrust Scrutiny

Google is offering A$47 billion to acquire cybersecurity startup Wiz, which scans cloud storage for security risks. This would be Google's largest acquisition ever, surpassing its purchase of Motorola Mobility in 2012.

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Estimated market influence

Google

Negativesentiment_dissatisfied

Analyst rating: N/A

Google is attempting to acquire Wiz for A$47 billion, which could face antitrust issues.

Alphabet

Negativesentiment_dissatisfied

Analyst rating: Buy

Alphabet, Google's parent company, is in advanced talks to acquire Wiz, potentially facing antitrust scrutiny.

Microsoft

Positivesentiment_satisfied

Analyst rating: Strong buy

Microsoft acquired Adallom for A$501 million, which is much less than Google's current offer.

Sequoia Capital

Neutralsentiment_neutral

Analyst rating: N/A

Sequoia Capital is a backer of Wiz, but their role in the acquisition isn't specified.

Andreessen Horowitz

Neutralsentiment_neutral

Analyst rating: N/A

Andreessen Horowitz is a backer of Wiz, no direct impact mentioned.

Index Ventures

Neutralsentiment_neutral

Analyst rating: N/A

Index Ventures is a backer of Wiz, no direct impact mentioned.

Greenoaks

Neutralsentiment_neutral

Analyst rating: N/A

Greenoaks is a backer of Wiz, no direct impact mentioned.

Wiz

Positivesentiment_satisfied

Analyst rating: N/A

Wiz is being acquired by Google for A$47 billion, which could lead to significant growth.

Motorola Mobility

Negativesentiment_dissatisfied

Analyst rating: N/A

Google acquired Motorola Mobility for A$19.5 billion, setting a precedent for large acquisitions.

Adallom

Positivesentiment_satisfied

Analyst rating: N/A

Microsoft acquired Adallom for A$501 million, which is much less than Google's current offer.

Context

Analysis and Summary: Google's Bid to Acquire Wiz

Google's New Offer: Google (Alphabet) is offering A$47 billion to acquire cybersecurity startup Wiz, up from its previous bid of A$36 billion.
Wiz's Services: Wiz provides cybersecurity software for cloud computing platforms like Microsoft Azure and Amazon Web Services, scanning for security risks in cloud storage.
Deal Significance: If successful, this would be Google’s largest acquisition ever, surpassing its A$19.5 billion purchase of Motorola Mobility in 2012.
Market Comparison: The deal is significantly larger than Microsoft’s A$501 million acquisition of cloud cybersecurity company Adallom, which was co-founded by Wiz’s former Israeli military officers.
Wiz's Growth and Valuation:
- Founded in 2020 by CEO Assaf Rappaport, Wiz is one of the fastest-growing startups ever.
- Valued at A$25 billion in a late 2023 employee tender offer (Wall Street Journal).
- Annual recurring revenue stood at A$782.89 million as of July 2023, with plans to reach A$1.57 billion by the end of 2024.
Investors: Backed by top-tier venture capitalists including Sequoia Capital, Andreessen Horowitz, Index Ventures, and Greenoaks.
Strategic Shift: Rappaport had previously hinted at an IPO but now appears to be delaying that plan as Google continues its pursuit.
Regulatory Scrutiny: The acquisition is likely to face antitrust scrutiny, given Google’s history of monopolistic practices and ongoing legal battles, including a US federal court ruling that could lead to its breakup.
Competitive Landscape: This move underscores the growing importance of cybersecurity in cloud computing and reflects Google’s strategic focus on strengthening its position in enterprise security.

Long-term implications: The acquisition highlights the increasing value of cybersecurity startups in the cloud era, with major tech firms vying for dominance in this critical market segment.