Google plans largest takeover in the company's history: Wiz

Google plans largest takeover in the company's history: Wiz

  • 18.03.2025 08:01
  • heise.de
  • Keywords: Datenbank, Kontoauszug

Alphabet is attempting to acquire cybersecurity startup Wiz for $30 billion, up from a rejected $23 billion offer last year. This would be Alphabet's largest acquisition yet, surpassing its previous records.

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Estimated market influence

Alphabet

Alphabet

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Analyst rating: Buy

Alphabet is making a new attempt to acquire Wiz.

Wiz

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Analyst rating: N/A

Wiz would have been the largest takeover in the history of the Google Group.

Context

Google's Largest Takeover Attempt: Wiz Acquisition

  • Alphabet (Google's parent company) is offering $30 billion to acquire Wiz, a cybersecurity startup, marking its largest acquisition attempt in history.
  • Wiz previously rejected a $23 billion offer last year and pursued an IPO instead.
  • The new offer represents a 30% increase over the previous bid.

Key Facts:

  • Wiz's valuation: $30 billion (€27.6 billion).
  • Founded in 2020, Wiz provides AI-driven security software for real-time threat detection and prevention.
  • Major clients: Amazon, Microsoft, and Google.
  • Founders' experience: Previously sold cybersecurity firm Adallom to Microsoft in 2015.

Market Implications:

  • Cybersecurity market growth: The global cybersecurity market is projected to grow at a CAGR of ~8% from 2023 to 2030, driven by increasing cloud adoption and AI integration.
  • Alphabet's strategic focus: Enhancing its cloud computing capabilities through Wiz's security solutions.

Strategic Considerations:

  • Regulatory environment: The deal may face antitrust reviews, but the current U.S. administration's stance on competition suggests a more lenient approach compared to previous scrutiny.
  • Competitive landscape: Alphabet is expanding into cybersecurity, a high-growth sector with limited competition in AI-driven solutions.

Historical Context:

  • Alphabet's acquisition history:
    • Fitbit (2019): $12.5 billion (later sold to Lenovo for $3 billion).
    • DeepMind (2014): $627 million (~$1.1 billion today).
    • YouTube (2006): $1.65 billion (~$2.6 billion today).

Financial Comparison:

  • The Wiz acquisition is valued at nearly double YouTube's purchase price, highlighting the premium placed on cybersecurity firms in the current market.

Long-term Effects:

  • Potential industry impact: Consolidation of Alphabet's position in cloud security could disrupt smaller competitors and set new benchmarks for AI-driven solutions.
  • Shareholder value: The deal may face investor scrutiny due to its size and potential regulatory hurdles, but it aligns with Alphabet's long-term growth strategy.

Competitive Dynamics:

  • Wiz's advanced AI capabilities make it a strategic target for Alphabet, which is expanding its cloud services globally.
  • The acquisition underscores the growing importance of cybersecurity in enterprise IT infrastructure.