Google’s parent company, Alphabet, is reportedly in advanced talks to acquire the cybersecurity startup Wiz for approximately $23 billion. If finalised, this would represent Alphabet’s largest acquisition to date, despite increasing regulatory scrutiny.
Recently, Alphabet considered acquiring the online marketing software company HubSpot but decided against it. The company now appears to be focusing on strengthening its cybersecurity capabilities with the potential acquisition of Wiz.
Wiz, originally founded in Israel and based in New York, has quickly become a leading provider of cloud-based cybersecurity services that use artificial intelligence to detect and respond to threats in real time. In 2023, Wiz generated around $350 million in revenue and collaborated with 40% of Fortune 100 companies.
This acquisition is particularly significant due to the heightened regulatory scrutiny from the U.S. government under President Joe Biden’s administration, which aims to curb the expansion of large tech companies through acquisitions. Despite this regulatory climate, Alphabet seems to be moving forward with its plans.
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Wiz partners with major cloud providers like Microsoft and Amazon and serves a diverse range of customers, including Morgan Stanley and DocuSign. With 900 employees across the United States, Europe, Asia, and Israel, Wiz had previously announced plans to add 400 employees globally in 2024.
If Alphabet proceeds with the acquisition, it would be a notable example of a major tech company pursuing a significant merger amid increased regulatory oversight. U.S. regulators have shown growing resistance to large tech companies expanding through acquisitions in recent years.
This proposed deal would exceed Alphabet’s previous largest acquisition, the $12.5 billion purchase of Motorola Mobility in 2012, which was subsequently sold for $2.91 billion. Back then, the Motorola acquisition aimed to position the company as a major competitor to Samsung in the Android smartphone market.
Currently, neither Alphabet nor Wiz has made any statements regarding the potential deal. The tech industry is keenly observing the situation, as this significant acquisition could greatly impact both cybersecurity and Alphabet’s broader business strategy.
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