Alphabet to buy Wiz for $32 billion in its biggest deal to boost cloud security

Alphabet to buy Wiz for $32 billion in its biggest deal to boost cloud security

  • 18.03.2025 13:38
  • msn.com
  • Keywords: AI, Market Growth

Alphabet is acquiring cybersecurity firm Wiz for $32 billion to enhance its cloud security offerings, while PepsiCo is buying Poppi for nearly $2 billion to expand into healthier sodas as demand for traditional beverages declines.

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Estimated market influence

Alphabet

Alphabet

Positivesentiment_satisfied
Analyst rating: Buy

Alphabet is acquiring Wiz to boost its cloud security, which will help it compete better against Amazon and Microsoft.

Wiz

Positivesentiment_satisfied
Analyst rating: N/A

Wiz's cybersecurity solutions are in demand, leading to a high acquisition by Alphabet.

Context

Alphabet to Buy Wiz for $32 Billion: Strategic Move in Cloud Security Race

  • Deal Details:

    • Alphabet (Google’s parent company) agreed to acquire cybersecurity startup Wiz for $32 billion, marking its largest-ever acquisition.
    • The deal is all-cash and expected to close by 2026.

  • Strategic Focus:

    • Google aims to strengthen its position in the cloud-computing market, competing against Amazon Web Services (AWS) and Microsoft Azure.
    • Wiz’s AI-powered cybersecurity solutions will bolster Google Cloud’s offerings, particularly in protecting cloud-based systems from critical risks.

  • Market Trends:

    • The acquisition underscores the growing importance of cybersecurity in the era of generative AI services like ChatGPT.
    • Demand for cloud security solutions has surged due to increasing reliance on cloud infrastructure and rising cyber threats.

  • Competitive Dynamics:

    • Google previously offered $23 billion for Wiz last year but faced antitrust concerns, forcing the startup to shelve the deal.
    • Wiz works with major cloud providers (AWS, Azure, Oracle, and Google Cloud) and counts notable customers like Morgan Stanley, BMW, and LVMH.

  • Regulatory Environment:

    • A harsh regulatory landscape in 2024 complicated large deals, but Wall Street remains optimistic about relaxed antitrust policies under the Trump administration.

PepsiCo Acquires Poppi for $1.95 Billion: Expansion into Healthier Soda Market

  • Deal Details:

    • PepsiCo agreed to buy Poppi, a prebiotic soda brand, for $1.95 billion, marking its entry into the “healthier soda” segment.
    • The deal includes $300 million in cash tax benefits, resulting in a net purchase price of $1.65 billion.

  • Strategic Focus:

    • PepsiCo aims to capitalize on shifting consumer preferences toward healthier beverages, particularly among young Americans.
    • Poppi’s prebiotic sodas combine fruit juice, apple cider vinegar, and low sugar content (≤5 grams per serving), aligning with gut health trends.

  • Market Trends:

    • Prebiotic sodas are the fastest-growing category in the U.S. carbonated soft drinks (CSD) market, driven by a preference for healthier options.
    • Poppi’s retail sales grew 122% year-over-year, achieving a 1% market share in the CSD segment.

  • Competitive Landscape:

    • PepsiCo faces competition from Coca-Cola’s Simply brand and other wellness-focused drink makers like Celsius Holdings and Keurig Dr Pepper.
    • The acquisition positions PepsiCo to counter competitors while addressing declining demand for traditional sodas and snacks.

  • Financial Implications:

    • PepsiCo expects the deal to help offset weak annual profit forecasts due to multiple price hikes affecting demand for its core products.