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Google in talks to acquire Wiz

Google in talks to acquire Wiz

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Google Acquisition

Google is in advanced talks to acquire Wiz, a fast-growing cybersecurity startup, for approximately $23 billion.

If the deal goes through, it would be Google’s largest acquisition ever and a major investment in the cybersecurity sector. Wiz was founded in March 2020 by Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, who previously served in Unit 8200, the cyber intelligence division of the Israel Defense Forces.

The New York City-based startup develops cybersecurity software for cloud computing and has quickly become a key player in the industry. Wiz’s client list includes notable companies like BMW, Slack, and Salesforce, and it collaborates with major cloud providers such as Amazon, Microsoft, and Google. The company has seen rapid growth, with annualized sales hitting $100 million just 18 months after its founding and reaching $350 million by 2023.

The discussions between Google and Wiz were initiated earlier this year, following investment from venture capitalists.

Google’s largest cybersecurity investment

However, terms of the deal have not been finalized, and the negotiations could still fall through, sources indicate.

A potential $23 billion acquisition of Wiz would significantly exceed Google’s previous largest deal, which was the purchase of Motorola Mobility for $12.5 billion in 2011. The current valuation of Wiz nearly doubles its $12 billion valuation from the most recent funding round. In March 2022, Google acquired the cybersecurity firm Mandiant for $5.4 billion, highlighting its ongoing efforts to enhance its cybersecurity capabilities and strengthen its cloud computing business.

According to Dan Ives, managing director and senior equity research analyst at Wedbush, acquiring Wiz would represent a significant strategic move to compete more effectively with dominant players like Microsoft Azure and Amazon Web Services. Cloud security has become increasingly crucial as more companies migrate their data to cloud platforms. The proposed acquisition comes at a moment when tech giants are under close regulatory watch, facing antitrust scrutiny under the Biden administration.

If the acquisition is completed, it would be a monumental exit for Wiz and a landmark deal in the cybersecurity industry.

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Noah Nguyen

Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
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