Google has announced that it is acquiring Wiz for$ 32 billion. The merger is Alphabet’s largest to date, more than double its past record-breaking$ 12 billion order of Motorola Mobility in 2012. Due to the growing need for safe cloud services, the business appears to have aggressively pursued this offer.
Tech companies are now rushing for cloud system as conceptual AI grows, and concerns about security issues like the CrowdStrike outage from last year have grown. Developers can prevent them before they become an issue with Wiz’s program, which incorporates AI-enabled security characteristics that identify serious challenges in cloud system.
Google Cloud may achieve a significant advantage in a market where it has previously fallen behind Microsoft Azure and Amazon Web Services. Google stated in its statement regarding the acquisition that Wiz may offer its customers improved and less expensive protection for a variety of cloud and code environments.
Despite the merger, Wiz’s items will still work and be accessible across all major skies, including those hosted on Oracle Cloud, Microsoft Azure, and Amazon Web Services.
According to Google Cloud CEO Thomas Kurian, who issued a press release about this merger information,” Google Cloud and Wiz share a mutual vision to create cybersecurity more visible and simple to use for organizations of any size and industry.” Additionally, Sundar Pichai, the CEO of Alphabet and Google, stated that” Together, Google Cloud and Wiz will turbocharge improved cloud security and the ability to use multiple clouds.”
SEE: Which Offers Better Cloud Security and Value Between CrowdStrike and Wiz?
Wiz’s rejection of Alphabet’s earlier offer
The startup cited concerns over antitrust laws and disagreements over whether it would operate as an independent division or be fully integrated into Google Cloud when it rejected Alphabet’s most recent offer of$ 23 billion in July 2024, according to The Wall Street Journal at the time.
After the deal failed, Wiz CEO Assaf Rappaport promised to pursue an initial public offering in the belief that it would achieve a higher market value ( the company’s shares were valued at$ 12 billion in May 2024 ). Rappaport has since re-engaged with potential customers, it seems.
Alphabet’s antitrust disputes and regulatory issues
Google stated that the agreement is subject to customary closing terms, including regulatory approvals. Due to the antitrust laws enacted by the Biden administration, including the Executive Order on Competition, which imposes strict supervision of mergers, particularly in the tech sector, Alphabet’s previous bid was hampered by these laws.
Although there was speculation that Donald Trump’s administration would repeal some regulations to encourage innovation, tariffs have instead been placed in place that could raise costs for tech companies. Investors are cautious about major acquisitions as a result of this change in policy.
SEE: How Trump’s Import Tariffs Will Impact Prices, Jobs, and Trade.
In the meantime, Google is currently facing two significant antitrust lawsuits in the United States. The Department of Justice demanded last year that Google stop using its Chrome browser, arguing that it has been utilizing the platform to attract users and maintains its position as a leader in online search. The business is currently awaiting a trial to determine the remedy.
A decision is also pending regarding whether Google’s ad technology business, which has also been subject to legal scrutiny in the U.K. and the EU, illegally monopolized the digital advertising market. A U.S. federal judge also ruled in August 2024 that Google has violated antitrust laws and has a monopoly on general search services and text ads.
For more information on the acquisition, watch Alphabet’s webcast about the news for the next two weeks. The transaction is discussed by Sundar Pichai, Thomas Kurian, Assaf Rappaport, CEO of Wiz, and CFO Anat Ashkenazi of Alphabet and Google.
