Google Close To $23 Billion Deal For Cybersecurity Firm Wiz

Google is reportedly in advanced discussions to purchase cybersecurity firm Wiz for $23 billion, according to The Wall Street Journal. Sources familiar with the situation indicated that an agreement could be reached soon.

in 2020, Wiz has rapidly expanded under CEO Assaf Rappaport. As recently as May, the company was considering an IPO and had achieved a valuation of $12 billion. A representative for Wiz declined to comment on the matter.

Google's Largest Acquisition

If this acquisition goes through, it would mark Google's largest purchase to date. This move underscores Google's ongoing commitment to cybersecurity, especially as cyber threats from nation-states and criminal actors continue to disrupt major organizations and governments. Google previously acquired Mandiant, another cybersecurity firm, for $5.4 billion two years ago.

Wiz offers cloud security solutions that provide executives and cybersecurity professionals with comprehensive insights into their company's cloud presence. This feature is particularly attractive to large firms with extensive computing resources. The company is supported by prominent investors such as Israeli VC firm Cyberstarts, Index Ventures, Insight Partners, and Sequoia Capital.

Antitrust Scrutiny

Despite its aggressive acquisition strategy, Google faces significant antitrust scrutiny. The Justice Department has filed two antitrust lawsuits against the company, with its acquisition practices being a focal point in the most recent case filed in 2023.

The potential deal with Wiz suggests that Google remains keen on mergers and acquisitions despite these competitive concerns. Previously, CNBC reported that Google was in talks to acquire sales software maker Hubspot; however, those discussions have reportedly cooled off.

Google did not immediately respond to a request for comment regarding the potential acquisition of Wiz.

FAQs

What is Google reportedly discussing to purchase and for how much?

Google is reportedly in advanced discussions to purchase cybersecurity firm Wiz for $23 billion.

Who is the CEO of Wiz, and what was the company's valuation as of May before the acquisition news?

Under CEO Assaf Rappaport, Wiz was considering an IPO and had achieved a valuation of $12 billion as of May before the acquisition news.

How would the acquisition of Wiz compare to Google's past purchases?

If the acquisition of Wiz goes through, it would mark Google's largest purchase to date, surpassing its previous acquisition of Mandiant for $5.4 billion.

What type of solutions does Wiz offer?

Wiz offers cloud security solutions that provide comprehensive insights into a company's cloud presence, which is particularly attractive to large firms with extensive computing resources.

What antitrust challenges does Google face in relation to its acquisition efforts?

Google faces significant antitrust scrutiny, with the Justice Department filing two antitrust lawsuits against the company, focusing on its acquisition practices in the most recent case filed in 2023.