Google to shell out $32 billion for cloud security startup Wiz

Google to shell out $32 billion for cloud security startup Wiz

  • 18.03.2025 14:00
  • cnbctv18.com
  • Keywords: Acquisition

Google is acquiring cloud security startup Wiz for $32 billion, marking its largest deal to enhance cloud security amid AI threats. Wiz will integrate into Google Cloud while continuing to support AWS, Azure, and Oracle platforms.

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Estimated market influence

Google

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Analyst rating: N/A

Google is acquiring Wiz to strengthen its cloud security offerings.

Wiz

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Analyst rating: N/A

Wiz is being acquired by Google for $32 billion, enhancing its market position.

Context

Google Acquires Cloud Security Startup Wiz for $32 Billion

Key Facts

  • Acquisition Value: Google agreed to acquire Wiz for $32 billion, marking its largest acquisition to date.
  • Deal Structure: The transaction is all-cash, finalized through a definitive agreement.
  • Wiz's Growth: Founded in 2020, Wiz achieved $100 million in annual recurring revenue (ARR) within 18 months under co-founder Assaf Rappaport.
  • Product Scope: Wiz specializes in cloud security tools for prevention, detection, and response, currently operating across platforms like AWS, Azure, and Oracle Cloud.
  • Previous Offer: Wiz previously rejected a $23 billion offer from Google, opting to pursue an IPO due to antitrust and investor concerns.

Market Implications

Competitive Dynamics

  • The acquisition positions Google to compete more effectively with Microsoft in the cloud security market.
  • Wiz’s tools will integrate with Google Cloud, leveraging its AI expertise to enhance scalability and effectiveness for enterprise customers.

Strategic Considerations

  • Google’s Focus: Strengthens Google Cloud’s infrastructure and security capabilities amid growing AI-driven cyber threats.
  • Wiz’s Independence Shift: Wiz’s decision to join Google marks a pivot from its earlier plan for independence and an IPO.

Long-Term Effects

  • The deal underscores the increasing importance of cybersecurity in the AI-driven digital landscape.
  • Google aims to bolster its cloud business by addressing the growing demand for advanced security solutions.

Regulatory Impact

  • While Wiz’s earlier decision to decline a $23 billion offer was influenced by antitrust concerns, the finalized acquisition may face regulatory scrutiny due to its size and potential market dominance.

This strategic move highlights Google’s commitment to expanding its cloud security offerings, positioning it as a stronger competitor in the rapidly evolving tech landscape.