Google is in advanced talks to acquire cybersecurity startup wiz for $23B

According to the Wall Street Journal, Alphabet, Google's parent company, is in advanced talks to acquire the cybersecurity startup Wiz. The transaction is valued at around $23 billion. If the deal is signed, it will be the biggest acquisition in the tech giant’s history.

The WSJ reports that negotiations are advanced, and the agreement could be finalized soon, barring any sudden complications. All indications are that Google will acquire one of the most promising companies of recent years.

Wiz, founded in 2020, quickly gained a reputation in the cybersecurity industry. The company offers security software designed for the cloud. In a short time, it achieved impressive financial results. The company’s revenue reached $350 million in 2023.

The acquisition of Wiz could significantly strengthen Google's position in the cloud computing market segment. The tech giant ranks third in this segment—behind Amazon and Microsoft. The WSJ emphasizes that although Google’s cloud services proliferated—revenues from this segment increased by 26% last year—the company still lags behind its competitors. Acquiring Wiz could help close that gap.

It is worth noting that Wiz is currently collaborating with many leading companies, including Amazon and Microsoft, which could add additional value for Google.

In 2021, Google completed the purchase of the specialist hardware and software company for athletes, Fitbit, for $2.1 billion. In 2022, it acquired the cybersecurity specialist Mandiant for nearly $5.4 billion. However, acquiring Wiz for $23 billion would be the largest transaction in Google's history, surpassing the purchase of Motorola Mobility for $12.5 billion in 2012.

The WSJ notes that this potential acquisition aligns with a broader consolidation trend in the cybersecurity sector. An example is Cisco's recent acquisition of Splunk for $28 billion.