Google In Advanced Talks To Buy Cybersecurity Startup Wiz For $30 Billion — Largest Deal Ever Amid Antitrust Uncertainty: Report

Google In Advanced Talks To Buy Cybersecurity Startup Wiz For $30 Billion — Largest Deal Ever Amid Antitrust Uncertainty: Report

  • 18.03.2025 03:20
  • benzinga.com
  • Keywords: Acquisition, Cybersecurity

Alphabet is in talks to acquire cybersecurity startup Wiz for $30 billion, potentially its largest deal yet. The acquisition faces antitrust scrutiny, as Google already faces regulatory issues.

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Estimated market influence

Alphabet Inc.

Alphabet Inc.

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Analyst rating: Buy

Alphabet is in advanced talks to acquire Wiz for $30 billion, which would be their largest acquisition ever.

Wiz

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Analyst rating: N/A

Wiz is a cybersecurity startup founded in 2020. Google's potential acquisition of Wiz could make it Alphabet's largest deal and signal increased focus on cloud infrastructure and cybersecurity.

Context

Analysis of Google's Potential Acquisition of Wiz

Key Facts and Data Points

  • Deal Value: $30 billion, marking Alphabet Inc.'s largest acquisition to date.
  • Previous Attempt: Acquisition nearly finalized last summer but abandoned due to regulatory concerns and structural disagreements.
  • Wiz Valuation:
    • Founded in 2020 by former Microsoft executives.
    • Offered cloud-based cybersecurity solutions.
    • Valued at $16 billion in late 2023.
  • Backers: Includes leading VCs like Sequoia Capital and Andreessen Horowitz.
  • Partnerships: Collaborates with major cloud providers (Amazon, Microsoft, Google).

Market Implications

  • Record-Breaking Deal: Exceeds Google's previous largest acquisition of Motorola Mobility for $12.5 billion.
  • Strategic Focus: Reflects Google's growing emphasis on cloud infrastructure and cybersecurity.
  • Competitive Landscape: Positions Alphabet to compete more effectively with Microsoft and Amazon in the cybersecurity market.

Business Impact

  • Antitrust Scrutiny: Potential deal may draw increased regulatory attention, given ongoing antitrust scrutiny under the Trump administration.
  • Regulatory Hurdles: Previous acquisition attempt failed due to regulatory concerns, highlighting risks for large tech acquisitions.

Long-Term Effects

  • Market Dominance: Could strengthen Google's position in the cybersecurity sector, potentially leading to increased competition and innovation.
  • Investment Signal: Indicates a shift in focus toward enterprise security solutions as cloud adoption continues to grow.

Competitive Dynamics

  • Rapid Growth: Wiz has emerged as one of the fastest-growing cybersecurity startups, attracting significant VC investment.
  • Strategic Partnerships: Existing partnerships with major cloud providers may facilitate integration and market expansion for Google.

Strategic Considerations

  • Risk Management: Potential regulatory challenges could delay or derail the deal, requiring careful navigation by Alphabet executives.
  • Portfolio Diversification: Acquisition aligns with broader trends in enterprise security, reflecting a proactive approach to emerging threats.