Confirmed: Google buys Wiz for $32B to beef up in cloud security

Google acquires Wiz for $32B to enhance cloud security services.

: Google, through parent company Alphabet, confirms buying cloud security startup Wiz for $32 billion in cash. The acquisition, set to complete in 2026 pending regulatory approval, signifies Google's largest purchase, surpassing the 2011 Motorola Mobility buy. Wiz’s ongoing revenue of $700 million is expected to reach $1 billion, and the company will remain independent to operate across all cloud providers. The acquisition bolsters Google's position in enterprise cloud and security, two sectors where it seeks to expand.

In a landmark move, Google, through its parent company Alphabet, confirmed its acquisition of Wiz, a cloud security startup, for an impressive $32 billion. This all-cash transaction marks the largest acquisition in Google's history, surpassing its earlier purchase of Motorola Mobility for $12.5 billion back in 2011. The strategic decision is fueled by Google's ambition to enhance its position in the enterprise cloud sector and significantly elevate its cybersecurity offerings. Despite this acquisition, Wiz is set to maintain its independent operations, enabling its platform to remain operational across all major cloud providers, a pivotal factor to ensure continued growth and influence in the cyber landscape.

The financial outlook for Wiz is exceedingly positive, with sources indicating an annual recurring revenue of $700 million, anticipated to surge to $1 billion. This rainmaking deal showcases Google's intention to empower cloud computing services by providing robust cybersecurity measures. CEO Thomas Kurian spearheads this acquisition, emphasizing the shared vision between Google Cloud and Wiz to make cybersecurity more accessible to diverse organizations. Kurian asserts, "Enabling more companies to prevent cyber attacks will help in minimizing the cost, disruption, and hassle caused by cybersecurity incidents."

Approval processes for the acquisition are underway, with the involved parties expecting completion by 2026, contingent on regulatory consent. The enduring on-again, off-again negotiations, initially stalled due to concerns surrounding antitrust issues and Wiz's demand for developmental independence, have culminated in a fruitful agreement. Such challenges echo previous acquisition endeavors within the technological space, hinting at broader market dynamics influencing tech giants like Google.

Pressure from market competitors remains palpable, with Google aiming to rival entities such as AWS and Microsoft Azure through both the expansion of enterprise cloud services and the bolstered security facilitated by joining forces with Wiz. This acquisition, expected to counterbalance other technological ventures like AI, illuminates Google's deepening involvement in cloud services as a core business trajectory.

Noteworthy investments in Wiz have come from major investors, including Sequoia, Cyberstarts, Index Ventures, Salesforce, Thrive Capital, and Greenoaks. This acquisition not only reassures these investors of lucrative returns but also strategically positions Google at the forefront of cybersecurity innovation. Amidst disruptions in technological markets, the synergy between Google Cloud and Wiz promises groundbreaking advancements in secure cloud computing solutions for organizations worldwide.

Sources: TechCrunch, CNBC, The Verge, Reuters, Bloomberg

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