Google is reportedly nearing a monumental acquisition of cybersecurity startup Wiz for approximately $23 billion, marking its largest purchase.
This potential deal outstrips its previous record of $12.5 billion paid for Motorola Mobility in 2012. Wiz, originating from Israel and currently based in New York, stands out as one of the world’s rapidly expanding software startups. It specializes in cloud-based cybersecurity services that include real-time threat identification and mitigation, using advanced artificial intelligence technology.
In 2023, Wiz reported revenues of around $350 million and worked with 40 per cent of Fortune 100 companies, as per its website. The company recently secured $1 billion in private funding, bringing its valuation to $12 billion.
Google, aiming to develop its cloud computing offerings, has previously acquired several companies, including the $5.4 billion purchase of cybersecurity firm Mandiant in 2022, and Siemplify, another cybersecurity entity. Wiz has partnered with major tech players like Amazon, Microsoft, and Oracle, and has a customer base that includes prominent firms such as Morgan Stanley and DocuSign.
Could Google’s acquisition of Wiz face issues?
If Alphabet, Google’s parent company, moves ahead with its acquisition of Wiz, it would mark a major, albeit rare, mega-deal within the tech industry under the intense regulatory gaze of U.S. President Joe Biden’s administration. This period has seen a noticeable tightening in regulatory attitudes towards the expansion of large tech entities through mergers and acquisitions.
The U.S. Justice Department has actively pursued Google with two major antitrust lawsuits—one challenging its dominance in search engines and another aimed at dismantling its digital advertising technology sector. A decision on the search lawsuit is anticipated by this summer.
According to The New York Times, the initiative to buy Wiz has been spearheaded by Thomas Kurian, CEO of Google Cloud. Kurian is keen on boosting his division’s ties to cybersecurity, which the Wiz acquisition could substantially support. The startup, which counts top firms like BMW and Slack among its clients, focuses on mitigating security risks for companies using cloud computing services.
Featured image: Canva / Ideogram
The post Google plans biggest acquisition yet, cybersecurity firm Wiz – report appeared first on ReadWrite.