Google Acquires Cybersecurity Firm Wiz for $32 Billion

Google's parent company, Alphabet, has made its largest-ever acquisition to date, entering into a deal to buy New York-based cybersecurity firm Wiz and making it a part of its Google Cloud division. This is the company's second attempt to buy Wiz after talks stalled last year at a lower $23 billion evaluation.

Wiz is a fast-growing Israeli-founded startup that works with companies like Microsoft and Amazon to provide cloud-based cybersecurity solutions. The company was valued at $12 billion in May 2024, which reportedly climbed to $16 billion later in the year in an equity offering to employees, and has been working towards an initial public offering (IPO) in the months since the previous acquisition fell through.

Should the deal receive regulatory approval, it will easily outsize the $12.5 billion paid by Google for Motorola Mobility in 2012. "We expect this change to enable us to execute and innovate even faster," said Wiz cofounder and CEO Assaf Rappaport in a blog post. "Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company."

Last year's purchase fell through after Wiz's directors and investors were worried it would fall foul of antitrust requirements, according to the Financial Times. This deal will still face scrutiny, but Alphabet and Wiz will hope that the current US administration and new Federal Trade Commission (FTC) chair Andrew Ferguson, will take a lighter touch.

However, Ferguson has previously indicated that he still intends to be firm with big tech and is continuing an antitrust probe into Microsoft. Perhaps to head off antitrust concerns, Google has confirmed that Wiz's products will continue to be available across competitor cloud platforms, including Amazon Web Services, Microsoft Azure, and Oracle Cloud.

"Wiz needs to remain a multicloud platform," Rappaport adds. The Google Cloud Marketplace will also offer a selection of other security services beyond those provided by Wiz. This move is the latest of several acquisitions that Google has made in recent years as it attempts to bolster security for its cloud computing customers.

In 2022, Google purchased two cybersecurity firms — Siemplify and Mandiant — for $500 million and $5.4 billion, respectively, with the latter company best recognized for uncovering the SolarWinds hack. Adding Wiz to that mix feels like a targeted effort to tighten Google's cloud protections in the face of Microsoft's less-than-stellar cybersecurity reputation.

The Acquisition: A Strategic Move for Google

This acquisition is a significant move by Google, which has been focusing on bolstering its security offerings in recent years. By acquiring Wiz, Google aims to expand its capabilities and provide more comprehensive security solutions to its cloud computing customers.

With the addition of Wiz's products, Google Cloud will now offer a range of security services, including threat detection, incident response, and vulnerability management. This move is expected to enhance the overall security posture of Google's cloud infrastructure and provide greater peace of mind for its customers.

The Future of Cybersecurity: A Changing Landscape

As cybersecurity threats continue to evolve and become more sophisticated, companies are under increasing pressure to stay ahead of the curve. The acquisition of Wiz by Google is a reflection of this trend and underscores the importance of investing in robust security solutions.

With the rise of cloud computing, cybersecurity has become an increasingly critical concern for businesses of all sizes. As the cloud continues to grow in popularity, so too will the demand for effective security measures to protect against threats.

The Implications: A New Era for Google's Cloud Division

The acquisition of Wiz by Google marks a significant turning point for the company's cloud division. With this move, Google is signaling its commitment to providing comprehensive and robust security solutions to its customers.

This acquisition is also expected to have implications for Microsoft and other competitors in the cloud computing space. As Google expands its security offerings, it will be a major player in the market and could potentially gain an edge over its rivals.