Alphabet, the parent company of Google, is reportedly in advanced talks to acquire Wiz for around $23 billion, according to The Wall Street Journal. This potential acquisition could be Alphabet’s largest to date and is seen as a move to strengthen Google’s cloud business. With Wiz’s all-in-one approach to cloud security, which scans data from various cloud platforms for security risks, Alphabet aims to enhance its cloud offerings.
In the first quarter of this year, Google’s cloud business saw a significant growth of 28%, reaching $9.57 billion. This indicates the increasing importance of cloud services for the company and the potential value that Wiz can bring in terms of security solutions.
Wiz, founded by former Microsoft employees Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik four years ago, recently raised $1 billion in a Series E funding round at a valuation of $12 billion. With $350 million in annual recurring revenue at the time, Wiz appeared to be on track for further growth and even an initial public offering. However, the potential acquisition by Alphabet could change the company’s trajectory.
Notably, Wiz has attracted investments from prominent firms such as Andreessen Horowitz, Lightspeed Venture Partners, Greylock, and Sequoia Capital. This demonstrates the confidence that these investors have in Wiz’s technology and its potential to disrupt the cloud security market.
While neither Google nor Wiz has responded to requests for comment, this potential acquisition showcases Alphabet’s commitment to expanding its cloud services and addressing the growing demand for secure cloud solutions. If the deal goes through, it could solidify Alphabet’s position in the highly competitive cloud market and provide a significant boost to Google’s cloud business.
