Alphabet, Google's parent company, is allegedly reopening discussions to buy cloud security provider Wiz for $33 billion.
If finalized, this will mark Alphabet's largest acquisition and a significant move towards strengthening its Google Cloud division against industrial leaders Amazon Web Services (AWS) and Microsoft Azure.
The talks come after Wiz rejected a $23 billion offer from Google in mid-2024, opting to pursue an independent path toward an initial public offering (IPO). The cloud security company, created in 2020 by former members of Israel's cyber intelligence unit, has quickly emerged as a major competitor in the cybersecurity market. Wiz, headquartered in New York, secures about 5 million cloud workloads, with high-profile clients including BMW, Siemens, and Slack.
According to sources acquainted with the situation, the most recent negotiations are ongoing, and no final agreement has been reached. The deal could still fall through, as it did in 2024. Regulatory monitoring by US and European authorities remains a significant concern, especially given Alphabet's ongoing antitrust battles.
Google faces multiple legal challenges, including charges from the US Department of Justice over its digital advertising and search dominance.
Despite these issues, some analysts believe that an acquisition of Wiz would be challenging from a legal standpoint, given that Google Cloud ranks third in market share after AWS and Azure. Strengthening its cybersecurity capabilities via Wiz could increase Google Cloud's appeal to organizations seeking robust security solutions, helping it close the gap with its competitors.
Wiz, which was valued at $12 billion in a funding round last year, has received investments from big investors, including Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts. Assaf Rappaport, the company's CEO, previously stated that declining Google's offer was a difficult decision, but one taken with confidence and the company's long-term future in mind.
As negotiations continue, all eyes will be on Alphabet to see if it can successfully negotiate regulatory hurdles and secure what might be against changing agreements in the cloud security industry.