Wiz Acquired by Alphabet for $32 Billion to Enhance Cloud Security
Deal News | Mar 18, 2025 | Zawya
Alphabet Inc., the parent company of Google, announced it is acquiring Wiz for $32 billion in what marks its largest acquisition to date. This strategic move aims to enhance Alphabet's competitive stance in the cloud computing domain, notably against rivals Amazon and Microsoft. Wiz, a burgeoning software startup valued at $12 billion in its latest funding round, is known for its cloud-based cybersecurity solutions powered by artificial intelligence. This acquisition is set to bolster Google's cloud business by integrating Wiz's solutions to help organizations mitigate critical security risks. Although an initial deal was postponed due to antitrust concerns, the current regulatory landscape in the USA, under the Trump administration, is expected to be more favorable. This optimism is supported by Wall Street's anticipation of easing antitrust policies. With customers including major cloud providers and high-profile companies, Wiz's acquisition responds to heightened demand for robust cybersecurity solutions, following incidents like the CrowdStrike outage that disrupted global operations. Despite the deal, Google's stock showed a marginal decline amidst concerns over extensive AI investments.
Sectors
- Cloud Computing
- Cybersecurity
- Mergers and Acquisitions (M&A)
Geography
- United States – Both Alphabet and Wiz are based in the United States, and the narrative spans regulatory and industry conditions in the US market.
- Global – The impacts of this acquisition resonate globally, given Wiz's client base and the significance of cybersecurity and cloud computing worldwide.
Industry
- Cloud Computing – The article revolves around Alphabet's strategic acquisition to enhance its cloud computing capabilities against rivals like Amazon and Microsoft.
- Cybersecurity – Wiz, the target company, specializes in AI-driven cybersecurity solutions which are central to the acquisition's strategic goals.
- Mergers and Acquisitions (M&A) – The article discusses a major acquisition involving Alphabet and Wiz, highlighting trends and regulatory impacts on M&A activities.
Financials
- $32 billion – Purchase price for Wiz by Alphabet.
- $23 billion – The initial offer from Google for Wiz before antitrust issues prevented the deal.
- $12 billion – Wiz's valuation during its last round of funding in May.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Alphabet Inc. | Bidding Company | Company | The parent company of Google, acquiring Wiz to bolster its cloud security offerings. |
| Wiz | Target Company | Company | A software startup known for cloud-based cybersecurity solutions, acquired for $32 billion. |
| Google Cloud | Other Company | Company | A business unit of Alphabet, set to integrate Wiz's cybersecurity solutions. |
| Amazon Web Services | Other Company | Company | A major competitor in the cloud industry and a collaborator with Wiz. |
| Microsoft Azure | Other Company | Company | A major competitor in the cloud industry and a collaborator with Wiz. |
| Oracle | Other Company | Company | A cloud provider working with Wiz. |
| Morgan Stanley | Other Company | Company | A customer of Wiz. |
| BMW | Other Company | Company | A customer of Wiz. |
| LVMH | Other Company | Company | A customer of Wiz. |