Alphabet, Google’s parent company, is said to be in advanced talks to buy cybersecurity startup Wiz for around $23 billion. This could be Google’s biggest deal ever. This move is meant to strengthen Google’s cloud computing business and make it better at protecting data in a market that is becoming more competitive.
The Biggest Company Google Has Bought
If the deal goes through, Google’s purchase of Wiz for $23 billion would almost double the company’s previous record-high purchase of Motorola Mobility for $12.5 billion in 2012. The deal is still being worked out, but it will probably be based on cash and could be finished soon. This possible purchase would be a big change in Google’s strategy, especially since the company just decided not to go after the online marketing software business HubSpot. People in the tech industry are paying close attention to this development because it could have big effects on safety and Alphabet’s business.
A Look At Wiz
Wiz was started in 2020 and has its main office in New York. It has quickly become a leader in cloud-based security products. With 40% of the Fortune 100 companies as clients and partnerships with big cloud providers like Amazon, Microsoft, and Google, the company uses AI to find and stop threats in real time. Wiz made about $350 million in sales in 2023, and it just recently got $1 billion in funding, which makes it worth $12 billion.
How Important Google Cloud Is For Business?
People think that Google Cloud’s purchase of Wiz is a smart move that will help it compete in the cloud services market. Google Cloud is currently ranked third, behind Amazon Web Services and Microsoft Azure. To set itself apart and get more business clients, it wants to use Wiz’s advanced protection features. This fits with Google’s larger plan to find new ways to make money besides its main business of search ads. Security and cloud computing are two areas that are becoming more and more important to the company. The deal, if it goes through, could give Google a big edge in cloud security, which could help it take customers away from AWS and Azure.
Problems With Regulations
There are a lot of legal hurdles in the way of the possible acquisition, especially since the Biden administration is paying more attention to tech industry mergers. The U.S. Department of Justice has already sued Google for antitrust violations, arguing that it has too much power in search engines and digital ads. Even with these problems, some experts think that a different administration might be more open to these kinds of deals in the future. Google may need to reassure regulators that Wiz will continue to work with other cloud providers and run on its own in order to ease their worries.