Google has announced its intention to acquire Wiz, a cloud security platform, for an impressive $32 billion in cash. This strategic move is aimed at enhancing security within its Google Cloud services and expanding its multi-cloud capabilities. The acquisition underlines Google’s commitment to its rapidly growing cloud business, which is experiencing significant growth.
If the acquisition is finalized, it will mark the largest purchase in Google’s history, surpassing its previous acquisition of Motorola Mobility for $12.5 billion in 2012. Wiz, established in 2020 and based in New York, has been delivering cybersecurity solutions to various companies, from startups to large enterprises. Notably, the startup declined a $23 billion buyout offer from Alphabet last year, emphasizing its value.
The acquisition is emblematic of Google’s focus on its cloud operations, which saw revenues surge from $26.3 billion in 2022 to an estimated $43.2 billion last year. Both companies have assured that Wiz’s services will remain available to other cloud providers like Amazon Web Services and Oracle, ensuring continuity for current clients despite the new ownership. Wiz’s platform is designed to identify potential attack paths, highlight the most critical risks, and assist developers in securing their applications prior to deployment.
Despite its potential benefits, the deal will likely face regulatory scrutiny. Google has been under investigation for antitrust concerns, particularly related to its market dominance in Chrome and the Play Store. Incoming FTC Chair Andrew Ferguson has emphasized a serious stance on enforcing antitrust laws.
If everything proceeds as planned, the acquisition could close sometime next year.
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