Google has announced that it acquires cybersecurity -starting wiz for $ 32 billion. The acquisition is the parent company Alphabet’s largest to date, more than doubling its earlier record-breaking $ 12.5 billion purchases of Motorola mobility in 2012.
The wave in generative AI has caused technology companies to rush after Sky Infrastructure, while major security events, such as last year’s crowdstrike power outage, have increased the concerns. Wiz’s software contains AI-driven security features that identify critical risks in Sky Infrastructure so that developers can alleviate them before they become a problem.
If Wiz’s products are integrated, Google Cloud can gain a significant advantage in a market where it has historically fallen behind the Amazon Web Services and Microsoft Azure. In Google’s announcement of the acquisition, it said Wiz will give its customers improved and lower cost security for more cloud and code environments.
Despite the acquisition, Wiz’s products will continue to work and be available across all major clouds, including Amazon Web Services, Microsoft Azure and Oracle Cloud Platforms.
In a press release on this acquisition news, Google Cloud CEO Thomas Kurian said: “Google Cloud and Wiz share a common vision to make cyber security more accessible and simpler to use for organizations of any size and industry.” And Alphabet and Google CEO Sundar Pichai noticed: “Together, Google Cloud and Wiz Turboarch improved safety kiss and the ability to use more clouds.”
See: Crowdstrike VS WIZ: which offers better cloud safety and value?
Wiz’s rejection of Alphabet’s previous offer
When Wiz rejected Alphabet’s last $ 23 billion quotes in July 2024, Start -up Questions Quoted Antitrust Control and Disagreements About whether it would act as an independent department or be fully integrated into Google Cloud, the Wall Street Journal reported at the time.
After the agreement collapsed, WIZ CEO ASSAF Rappaport told employees that the company would pursue an preliminary public offer, believing it could achieve a higher valuation as a listed unit (the company was appreciated at $ 12 billion by investors in May 2024). Nevertheless, Rappaport clearly reinstated with potential buyers since.
Legislative challenges and alphabet’s antitrust matches
Google said the agreement is subject to usual closure conditions, including regulatory approvals. Alphabet’s previous commandments faced obstacles due to anti -rut rules introduced by the Biden administration, such as the executive order of competition requiring strict control of mergers, especially in the technology sector.
Although there was speculation that US President Donald Trump might be able to roll back certain rules to favor innovation, his administration has instead introduced tariffs that could increase the cost of tech companies. This shift in politics has made investors cautious with larger acquisitions.
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Meanwhile, Google is currently facing two major antitrust cases in the states. Last year, the Department of Justice Google Delest demanded its Chrome browser, arguing that it has utilized the platform to heal users for its search engine and maintained dominance in online search. The company is now waiting for a trial.
A verdict is also pending whether Google illegally monopolized the digital advertising market through its ad technology company, which has also received legal control in England and the EU. In August 2024, an American federal judge also stated that Google has a monopoly on general search services and text ads and has broken antitrust laws.
For more details about the acquisition, Alphabet’s Webcast on the news will be available to look for the next two weeks. Sundar Pichai, Thomas Kurian, Wiz CEO Assaf Rappaport and Alphabet and Google CFO Anat Ashkenazi discuss the transaction.