Google plans buying Wiz for $23 Billion, to boost cybersecurity

Alphabet Inc., the parent company of Google, is reportedly courting cybersecurity start-up Wiz Inc. The insider, who requested anonymity to reveal sensitive information, calculated that the deal could be valued at $23 billion.  The Wall Street Journal covered the report.

The negotiations follow Alphabet’s announcement last week, that it was abandoning its plans to purchase customer relationship management startup HubSpot Inc. A possible acquisition of Wiz’s scale is unprecedented for a major digital giant like Alphabet, as was the HubSpot merger, considering the increased scrutiny the business is subject to from antitrust authorities.

In addition to the case from the US Justice Department accusing it of exploiting its dominant position in online search, Google is already facing many antitrust concerns related to its digital advertising tools.

Alphabet has increased investments in its cloud customer business, providing customers with additional generative AI tools. Google announced that, despite still trailing Microsoft Corp. and Amazon.com Inc. in the cloud computing industry, its cloud division has turned a profit in the last three quarters, following years in which it was a loss-making venture.

Based in New York Wiz establishes connections with cloud storage companies like Microsoft Azure, and Amazon Web Services, finds and scans cloud-stored data, and eliminates security threats. During a May investment round that attracted investors including Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital, the 2020-founded business was valued at $12 billion.

Following its $5.4 billion acquisition of cybersecurity company Mandiant Inc. in 2022, Alphabet would then make a move for Wiz. That was the second-biggest acquisition for the business; only its 2012 purchase of Motorola Mobility Holdings LLC surpassed it.

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Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.

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