Behind the Deal
Google’s parent company Alphabet is reportedly acquiring cybersecurity company Wiz for $32 billion. While a deal had been initially struck last summer for $23 billion, it eventually fell through over investors’ concerns regarding regulatory obstacles.
It appears that both parties are now fully committed to finalizing the deal, which will coincidentally mark Google’s largest acquisition by a significant margin. As seen in the graph below, the company’s largest deal had been the purchase of Motorola Mobility for $12.5 billion, followed by the acquisition of DoubleClick for $3.1 billion.
Indeed, companies and investors were quite optimistic over future merger & acquisition regulatory oversight, as it was believed that the Trump administration would likely be less strict on this matter. However, so far, the opposite has occurred.
More specifically, Vice-President JD Vance’s take on big tech, along with Trump’s Federal Trade Commission Chair Andrew Ferguson’s tough approach to merger oversight, has shaken overall confidence in this area. From a macroeconomic perspective, ongoing trade wars and overall market volatility have likewise contributed to the uncertainty.
In fact, Google itself it currently facing two antitrust lawsuits. One involves allegations that the company unlawfully maintained a monopoly in online search and advertising by restricting competition through its Chrome Browser and exclusive search agreements. The other concerns Google’s lucrative advertisement technology business, with the Department of Justice (DOJ) claiming that the Company dominates the digital ad marketplace and has leveraged its power to stifle innovation and competition.
This has not stopped Google from moving forward with this deal, at a time where cloud computing has become a fiercely competitive market, predominantly due to the surge of generative AI companies that require significant computing power. By integrating Wize’s security and interoperable cloud solutions, Google will be looking to enhance its cloud offerings, thereby attracting a broader customer base and ultimately narrowing the gap with market leaders, such as Microsoft and Amazon.
What does Wiz do?
Headquartered in New York City, Wiz is as a cloud security company founded in 2020 by Assaf Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak. Interestingly enough, the founders had previously built and later sold a similar company, Adallom, to Microsoft for $320 million back in 2015.
During its seed funding phase, co-led by Cyberstarts, Wiz secured $21 million. Shortly after, well-known venture capital firms such as Sequoia Capital, Insight Partners, and Index Ventures provided substantial financial backing in subsequent funding rounds. By March 2024, Wiz raised another $1 billion, elevating its valuation to approximately $12 billion.
Indeed, Wiz on its promise, having attracted a significant customer base and demonstrating positive financial performance, having achieved an annual recurring revenue of $500 million.
Now, as it integrates with Google’s ecosystem, it is looking to expand its operations. As reported by Wiz’s blog post about the deal, “becoming part of Google Cloud is effectively strapping a rocket to our back: it will accelerate our rate of innovation faster than what we could achieve as a standalone company”.
Google and Wiz share that same vision. By joining Google, our rocket ship will get even faster, bringing together leading cloud security, data, and AI technology for our customers. Buckle up.
— Wiz (@wiz_io) March 18, 2025
From a technical standpoint, the company’s platform utilizes an agentless scanning approach, enabling security assessments without the need to install extra software on each computer or cloud system. Instead, it connects directly to the cloud, allowing for a full coverage of a cloud stack, including architecture, internet exposure, software, configuration of vulnerabilities, identities, data secrets, and potential malware threats.
Naturally, Wiz’s success is also driven by the niche market it operates in. As previously reported, the explosion of cloud adoption has likewise made cloud environments a lucrative target for cybercriminals seeking to exploit vulnerabilities, steal data, manipulate algorithms, or gain unauthorized access. Ultimately, these factors – combined with Wiz’s innovative technology and the experience of its founders – scream success.
