Google parent Alphabet closing in on $30 billion deal to acquire Wiz
The cybersecurity startup previously rejected a $23 billion offer. Now, Alphabet is back at the table as it looks to strengthen its cloud security business.
Alphabet Inc., Google’s parent company, is once again in talks to acquire the cybersecurity startup Wiz, this time at a valuation of around $30 billion, according to a report by The Wall Street Journal. This marks a dramatic resurgence of takeover negotiations between the tech giant and Wiz, months after the Israeli-founded startup rejected an earlier $23 billion acquisition bid in favor of pursuing an initial public offering (IPO).
The renewed talks underscore Google’s pressing need to bolster its cloud security offerings as it battles Microsoft and Amazon in the increasingly competitive cloud computing market. Should a deal materialize, it would be the largest acquisition in Google’s history. However, sources indicate that negotiations are ongoing, and no agreement has been finalized. Both Alphabet and Wiz have declined to comment.
Google’s renewed pursuit of Wiz highlights its strategic imperative to strengthen its cybersecurity capabilities. The company has invested heavily in security, including its $5.4 billion acquisition of Mandiant in 2022, but it still lags behind Microsoft, which has successfully integrated security into its cloud and enterprise offerings. Wiz, which provides cloud-based security solutions that integrate seamlessly with Amazon Web Services (AWS) and Microsoft Azure, could provide Google with the edge it needs.
For Google, acquiring Wiz would be a defensive move as well as an offensive one. By securing the startup’s cutting-edge cloud security platform, Google could prevent a rival—whether Microsoft, Amazon, or a private equity firm—from acquiring a company that has rapidly become one of the most sought-after players in cybersecurity.
Wiz’s Meteoric Rise and IPO Aspirations
Founded in 2020 by Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, Wiz has quickly established itself as a dominant force in the cybersecurity industry.
The startup previously turned down Google’s $23 billion bid in July 2024, choosing instead to continue its path toward an IPO. In a memo to employees at the time, CEO Assaf Rappaport emphasized that Wiz’s vision was to become an independent cybersecurity giant rather than being absorbed by a larger tech company. The company had recently raised $1 billion at a $12 billion valuation, with backing from top-tier investors such as Andreessen Horowitz, Sequoia Capital, and Lightspeed Venture Partners.
Rappaport’s decision to reject Google’s initial offer was seen as a bold move, reflecting confidence in Wiz’s ability to further grow its market presence. The rejection was also interpreted as a potential bet on a shifting cybersecurity landscape. Just days before the July talks, a catastrophic failure at CrowdStrike—one of Wiz’s key competitors—caused a global IT outage, highlighting the increasing importance of robust cybersecurity solutions. Wiz, seeing an opportunity, may have opted to push forward with its IPO to solidify its position as an independent leader in the space.
The Bigger Picture: A Transforming Cybersecurity Market
The evolving discussions between Google and Wiz come amid a broader wave of consolidation in the cybersecurity industry. Investment in cloud security has surged as organizations worldwide grapple with increasingly sophisticated cyber threats. Tech giants like Google, Microsoft, and Amazon have all ramped up their security acquisitions, recognizing that robust cybersecurity offerings are now a competitive differentiator in the cloud computing wars.
However, regulatory scrutiny could pose a challenge to any deal. Antitrust regulators in both the U.S. and Europe have been closely monitoring major tech acquisitions, particularly those involving companies that play a crucial role in digital infrastructure. Google’s attempt to acquire Wiz, if finalized, could face significant regulatory hurdles, similar to the scrutiny that accompanied its purchase of Mandiant.
