In what could be its largest acquisition to date, Google’s parent company Alphabet is reportedly in advanced negotiations to purchase cloud security company Wiz for approximately $23 billion, according to a recent report from The Wall Street Journal.
Founded just four years ago by former Microsoft employees, Wiz has quickly become a major player in the cloud security space. The company offers an all-in-one cloud security platform that integrates with major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud. Wiz’s technology scans data across these platforms to identify potential security risks.
This potential acquisition appears to be a strategic move by Google to bolster its cloud computing division. Google Cloud, while growing steadily, still trails behind market leaders Amazon and Microsoft. In the first quarter of 2024, Google Cloud reported revenue of $9.57 billion, representing a 28% year-over-year increase.
The timing of this news is noteworthy, coming just two months after Wiz announced a $1 billion Series E funding round that valued the company at $12 billion. To date, Wiz has raised a total of $1.9 billion from investors including Andreessen Horowitz, Sequoia Capital, and Index Ventures.
If the deal goes through, it would mark a significant shift for Wiz, which appeared to be on track for potential acquisitions of its own and an eventual IPO. At the time of its last funding round, Wiz reported $350 million in annual recurring revenue.
Neither Google nor Wiz have officially commented on the reported negotiations. However, this development highlights the increasing importance of cloud security in the tech industry, as well as Google’s commitment to strengthening its position in the competitive cloud market.
As talks are still ongoing, it remains to be seen whether this acquisition will be finalized. If it does proceed, it could significantly reshape the cloud security landscape and further intensify competition among the major cloud providers.
