Google eyes its biggest acquisition yet, Alphabet may buy cybersecurity startup Wiz for $23bn
Google is reportedly planning its biggest startup acquisition ever, with talks to buy the New York City-based cloud cybersecurity startup Wiz. The potential $23 billion deal, nearly twice the amount Google spent on Motorola Mobility in 2012, would mark a significant milestone in the company’s history.
Wiz, a renowned provider of cloud cybersecurity solutions, partners with industry giants like Amazon and Oracle. The startup specializes in offering “siloed security tools and scanners” for the enterprise sector. According to Wiz, their technology secures corporate cloud infrastructure by creating a normalizing layer between cloud environments, enabling businesses to rapidly identify and mitigate critical risks.
Strategic Move to Bolster Cloud Security
Google’s interest in acquiring Wiz appears to be a strategic move aimed at strengthening its cloud security offerings, especially in light of recent security breaches at Microsoft. By integrating Wiz’s advanced cybersecurity capabilities, Google aims to position itself as a leading secure cloud platform.
Thomas Kurian, head of Google Cloud, has been a key advocate for this acquisition. His leadership has driven Google’s previous investments in cloud security, including a half-billion-dollar purchase of a cloud security startup in 2022 and a $5.4 billion acquisition of Mandiant, the company that uncovered the SolarWinds hack.
If successful, the acquisition of Wiz could significantly enhance Google’s cybersecurity infrastructure, offering robust protection against emerging threats. This move underscores Google’s commitment to providing secure cloud solutions to its enterprise clients.
Regulatory Hurdles and Market Implications
Despite the promising outlook, the deal faces potential regulatory challenges. The Biden administration has been actively pursuing antitrust actions, including a Department of Justice lawsuit over Google’s Search deal with Apple and the Federal Trade Commission’s attempt to block Microsoft’s acquisition of Activision.
Regulatory reviews could scrutinize the Wiz acquisition, potentially delaying or even blocking the deal. However, if approved, this acquisition could solidify Google’s market position and set a new benchmark for cloud security standards.
Industry Reactions and Future Prospects
The tech industry is closely watching Google’s moves, anticipating the broader implications of such a high-profile acquisition. If the deal goes through, it could spark a wave of consolidation in the cloud security sector, with other tech giants following suit to enhance their cybersecurity capabilities.
For now, the tech world awaits further developments. Google’s potential acquisition of Wiz represents not just a significant financial investment but a strategic bid to lead in the increasingly critical field of cloud cybersecurity.
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