https://globalcybersecuritynetwork.com/company/wiz/
Alphabet Inc. is currently engaged in negotiations to acquire cloud-security firm Wiz Inc. for $33 billion, reviving discussions that were halted last summer following protracted talks, as reported by sources familiar with the situation.
If finalized, this acquisition would mark Alphabet’s largest to date and could enable Google to enhance its position in the competitive cloud-computing sector, where it seeks to rival Microsoft Corp. and Amazon.com Inc. After several years of financial losses, Google’s cloud division has recently become profitable, although its sales growth has begun to decelerate.
The specifics of the agreement remain unsettled and may still evolve, or the negotiations could conclude without a resolution. A spokesperson for Wiz declined to provide comments, and Alphabet has not responded to inquiries for information.
For Wiz, these discussions signify a shift in strategy, as the company previously rejected Alphabet’s $23 billion offer last July, opting instead to maintain its independence and aim for an initial public offering. Concerns regarding a potentially lengthy regulatory approval process, with scrutiny from competition authorities in both the US and Europe regarding the technology sector’s influence and market dominance, contributed to Wiz and its investors’ hesitance to accept the acquisition.
Wiz’s Chief Executive Officer, Assaf Rappaport, who referred to last year’s offer from Alphabet as “humbling,” expressed a desire to develop Wiz into a formidable independent cybersecurity entity, competing against firms such as CrowdStrike Holdings Inc. and Palo Alto Networks.
The administration of U.S. President Donald Trump is expected to create a more favorable environment for deals; however, Alphabet’s proposal may still attract the attention of antitrust regulators. Google has been actively defending itself against various legal challenges, including accusations from the Department of Justice regarding the misuse of its dominant position in online search. In a significant ruling last year, a federal judge determined that Google was operating an illegal monopoly in the search sector. Additionally, the company is currently involved in another antitrust lawsuit concerning its digital advertising services.
Despite these challenges, Google ranks third in the cloud market, trailing behind Microsoft and Amazon, which could provide a basis for countering regulatory concerns related to market concentration in the cloud sector.
Wiz, a company founded by Israelis and headquartered in New York, has attracted investments from notable firms such as Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts. In a funding round last year, the company’s valuation reached $12 billion.
The Wall Street Journal previously reported on the renewed discussions.
