Google’s parent company, Alphabet Inc., is reportedly in advanced negotiations to acquire cybersecurity startup Wiz for approximately $30 billion.
If completed, this acquisition would become the tech giant’s largest deal in its history, far surpassing its previous record of $12.5 billion for Motorola Mobility in 2012.
This isn’t Alphabet’s first attempt to acquire Wiz. In July 2024, similar negotiations collapsed when Wiz declined a $23 billion offer, choosing instead to pursue a potential initial public offering (IPO).
According to The Wall Street Journal, Wiz CEO Assaf Rappaport acknowledged the difficulty of turning down such a substantial offer, stating, “saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making this choice.”
Founded in 2020 by alumni of Israel’s elite cyber intelligence unit, including Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, Wiz has quickly established itself as a leader in cloud security solutions.
The company’s platform analyzes cloud infrastructure across major providers, including Amazon Web Services, Microsoft Azure, Google Cloud Platform, and others, to identify security vulnerabilities and risks.
The acquisition would significantly strengthen Alphabet’s cybersecurity capabilities and enhance its Google Cloud business, which generated over $43 billion in revenue last year but still trails behind market leaders AWS and Microsoft Azure.
Exceptional Growth and Valuation
Wiz has experienced meteoric growth since its founding, claiming to be the fastest startup ever to scale from $1 million to $100 million in annual recurring revenue between February 2021 and July 2022.
The company now protects over 5 million cloud workloads and scans approximately 230 billion files daily.
According to the Financial Times, Wiz was last valued at $12 billion in May 2024, and the $30 billion offer represents a huge premium, having raised about $1.9 billion via several funding rounds.
The company currently services nearly 50% of Fortune 100 companies, demonstrating its widespread adoption in enterprise environments.
Wiz’s cloud risk engine creates a comprehensive view of security posture by mapping entire cloud architectures and identifying “toxic combinations” of vulnerabilities that could lead to breaches.
The platform operates in a read-only mode to scan virtual machines, containers, serverless applications, and data repositories across multi-cloud environments.
The integration with Google Cloud could enhance Google’s Security Command Center (SCC) capabilities, providing customers with more contextual security insights and automated remediation workflows.
Any deal of this magnitude would likely face significant regulatory scrutiny, particularly given Alphabet’s ongoing antitrust issues.
With this possible acquisition, Alphabet hopes to expand its revenue streams outside search-related advertising and fortify its position against long-standing giants such as AWS and Microsoft Azure in the competitive cloud computing space.
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