Google to Acquire Cybersecurity Firm Wiz for $32 Billion
By Michael Liedtke and Wyatte Grantham-Philips
SAN FRANCISCO: Google has agreed to purchase cybersecurity firm Wiz for $32 billion, marking the tech giant’s largest acquisition to date. This move is part of Google’s aggressive expansion into cloud computing, driven by the growing demand for artificial intelligence technology. The proposed takeover, announced on Tuesday, is expected to enhance Google’s position in the cloud computing market, where it competes with Microsoft and Amazon.
The acquisition of Wiz, a five-year-old startup founded by four friends who met in the Israeli army, will bolster Google Cloud’s security capabilities. Wiz, which generates an estimated $1 billion in revenue annually, provides security tools to protect data centers from its headquarters in New York. Google CEO Sundar Pichai predicts that the addition of Wiz will result in better security at a lower cost for Google Cloud customers.
The deal, which exceeds Google’s previous largest acquisition of Motorola Mobility for $12.5 billion in 2012, is expected to face regulatory scrutiny. Antitrust regulators will examine the potential impact on competition and pricing in the cloud computing market. Wedbush analysts believe that the acquisition is a strategic move by Google to strengthen its position in the cloud space, where it has fallen behind its competitors.
The acquisition is also expected to be one of the largest cybersecurity deals in history, ranking among the top 20 most expensive takeovers of a software company. Alphabet’s shares declined 2% to close at $160.67 following the announcement. Google’s previous acquisitions, such as YouTube and DoubleClick, have proven successful, and the company hopes to replicate this success with the acquisition of Wiz.
The deal is subject to regulatory approval and is expected to close in 2026. If approved, Wiz will join Google Cloud, which has become a significant contributor to Google’s revenue, with annual revenue growing 64% to $43.2 billion last year.
Acquisition Details
- Google to acquire Wiz for $32 billion
- Largest acquisition in Google’s 26-year history
- Wiz to join Google Cloud, enhancing security capabilities
- Deal subject to regulatory approval, expected to close in 2026
Market Reaction
- Alphabet’s shares declined 2% to close at $160.67
- Wedbush analysts believe the acquisition is a strategic move to strengthen Google’s position in the cloud space
Regulatory Scrutiny
- Antitrust regulators to examine potential impact on competition and pricing
- Deal expected to face regulatory scrutiny due to its size and potential impact on the cloud computing market
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