Analysis
The $30 billion question: Will Wiz finally sell to Google?
After rejecting a $23 billion bid, the cybersecurity powerhouse faces a new decision.
Alphabet’s renewed attempt to acquire Wiz for a staggering $30 billion is more than just another mega-deal in the tech world—it’s a battle over the future of cybersecurity and cloud dominance. For Google, this is a strategic imperative. For Wiz, it’s a test of independence versus immediate financial windfall. And for the broader industry, it’s a signal that the fight for cloud security leadership has entered a new phase.
Google’s interest in Wiz is not new. The Israeli-founded startup, which has rapidly emerged as a dominant force in cloud security, previously turned down a $23 billion bid in mid-2024, opting instead to continue on its trajectory toward an initial public offering. The increased offer of $30 billion underscores Google’s urgency in bolstering its cybersecurity capabilities—an area where it has lagged behind Microsoft, the undisputed leader in cloud security integration.
At the heart of this renewed bid is Google’s need to reinforce its cloud division, particularly in security, where the company remains an underdog to Microsoft and Amazon. Google Cloud has made significant investments in cybersecurity, most notably acquiring Mandiant for $5.4 billion in 2022. Yet, despite these moves, Google has struggled to match Microsoft’s seamless integration of security tools into its enterprise and cloud offerings. Acquiring Wiz would give Google access to one of the most advanced cloud security platforms on the market, one that already works across Amazon Web Services (AWS) and Microsoft Azure.
Why Wiz Matters
Founded in 2020 by Assaf Rappaport and his team—who previously built and sold Adallom to Microsoft—Wiz has skyrocketed to prominence. The company’s annual recurring revenue (ARR) has already reached $500 million, with over 45% of Fortune 100 companies using its platform. Wiz’s rapid rise is due to its approach to cloud security, offering visibility and risk assessment tools that integrate seamlessly into existing enterprise infrastructure.
In rejecting Google’s previous offer, Rappaport emphasized a vision of Wiz as an independent cybersecurity giant, potentially rivaling industry heavyweights like Palo Alto Networks, CrowdStrike, and even Microsoft. Since then, the company has continued expanding, including acquiring Israeli startups Dazz and Gem Security. That trajectory suggests confidence in going public rather than selling out.
However, the landscape has shifted. The cybersecurity industry has entered a period of consolidation, driven by increasing threats and growing enterprise reliance on cloud-based security solutions. Google’s renewed bid at a significantly higher valuation suggests that Wiz may now face a more difficult decision: whether to take the money or continue the fight for independence.
A Defensive and Offensive Move for Google
For Google, the Wiz acquisition would serve both defensive and offensive purposes. Defensively, it prevents Wiz from falling into the hands of a competitor, whether Microsoft, Amazon, or private equity firms eager to carve out a larger share of the cybersecurity market. Offensively, Wiz’s technology could serve as a cornerstone in Google Cloud’s broader security strategy, helping the company compete on a more level playing field with Microsoft.
But the deal won’t be without obstacles. Regulatory scrutiny looms large over any major tech acquisition, particularly one involving a critical cybersecurity provider. European and U.S. regulators have already been tightening the screws on Big Tech, wary of further consolidation that could stifle competition in crucial sectors like cloud computing and cybersecurity. Google’s Mandiant acquisition raised some regulatory eyebrows, and a Wiz deal—nearly six times as large—would almost certainly invite deeper scrutiny.
Will Wiz Sell This Time?
The central question remains: will Wiz accept Google’s offer, or will it hold out for an IPO? The answer hinges on multiple factors. On one hand, a $30 billion offer is a massive return for investors, including heavyweights like Andreessen Horowitz, Sequoia, and Lightspeed. On the other, Wiz’s leadership has consistently articulated a vision of long-term independence.
Last year's CrowdStrike failure, which caused widespread global IT outages, has only heightened the importance of robust cloud security solutions. Furthermore, with the cybersecurity market booming, Wiz’s IPO prospects remain strong—though market conditions could shift unpredictably, making the certainty of a $30 billion payout tempting.
The Bigger Picture: Cybersecurity at a Crossroads
Regardless of whether the deal goes through, Google’s pursuit of Wiz highlights the escalating importance of cybersecurity in the modern digital economy. The cloud security market is not just growing—it’s becoming one of the most critical battlegrounds in tech. Microsoft’s dominance, Amazon’s growing investments, and Google’s struggle to catch up all point to a rapidly shifting landscape where security is no longer an afterthought but a primary driver of strategic decisions.
If Wiz sells, it will mark the biggest exit in Israeli tech history and a transformative moment for Google Cloud. If it holds out, it will set up one of the most anticipated IPOs in cybersecurity history. Either way, this is a turning point not just for Wiz or Google, but for the entire industry.
