{"id":262067,"date":"2025-03-19T10:40:50","date_gmt":"2025-03-19T10:40:50","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/19\/alphabet-to-buy-wiz-for-32-billion-in-its-biggest-cloud-security-deal\/"},"modified":"2025-03-19T10:40:50","modified_gmt":"2025-03-19T10:40:50","slug":"alphabet-to-buy-wiz-for-32-billion-in-its-biggest-cloud-security-deal","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/19\/alphabet-to-buy-wiz-for-32-billion-in-its-biggest-cloud-security-deal\/","title":{"rendered":"Alphabet to Buy Wiz for $32 Billion in its Biggest Cloud Security Deal"},"content":{"rendered":"
\"Alphabet<\/div>


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Alphabet\u00a0will\u00a0buy\u00a0fast-growing startup\u00a0Wiz<\/a>\u00a0for about $32\u00a0billion (roughly Rs.\u00a02,76,784 crore) in\u00a0its\u00a0biggest\u00a0deal\u00a0ever, the Google parent said Tuesday, as it doubles down on cybersecurity\u00a0to sharpen\u00a0its\u00a0edge in the\u00a0cloud-computing race against Amazon.com and Microsoft.<\/p>\n

The blockbuster\u00a0deal\u00a0will make\u00a0Wiz\u00a0part of Google’s<\/a>\u00a0cloud\u00a0unit and strengthen the company’s efforts in cybersecurity\u00a0solutions that companies use to remove critical risks.<\/p>\n

Its\u00a0high price and unusually big breakup fee suggest\u00a0Alphabet<\/a>\u00a0is comfortable that the\u00a0buy\u00a0will pass muster with the White House, even as the Trump administration has inserted\u00a0itself into major\u00a0deals and promised heavy scrutiny of Big Tech.<\/p>\n

Shares of\u00a0Alphabet\u00a0dipped nearly three percent. The stock was down 13 percent this year before Tuesday on worries over\u00a0its\u00a0hefty AI spending against the rise of China’s lower-cost DeepSeek<\/a> and a pullback in tech giants that led the market for the past two years.\u00a0<\/p>\n

To nail down the acquisition,\u00a0Alphabet\u00a0had to agree to a heavier price than last year’s $23\u00a0billion (roughly Rs.\u00a01,98,935 crore) bid for\u00a0Wiz, which the Israeli startup had rejected.<\/p>\n

It was valued at $12\u00a0billion (roughly Rs.\u00a01,03,792 crore) in a private funding round last May, with more than $500 million (roughly Rs.\u00a04,324 crore) in annual recurring revenue as of mid-2024.\u00a0<\/p>\n

Sources said the two parties have kept in contact even after\u00a0Wiz’s rejection last year, as Google\u00a0Cloud\u00a0CEO Thomas Kurian remained consistent in his pursuit.<\/p>\n

The talks picked pace in the past two months after Donald Trump returned to the White House, sources said, requesting anonymity to discuss private matters.<\/p>\n

Trump has said he would continue heavy scrutiny on Big Tech<\/a>, which began during his first term, though Wall Street expects a shift in antitrust policies under the president, whose pick to lead the Federal Trade Commission, Andrew Ferguson, may dial back on big M&A regulation.<\/p>\n

Wiz\u00a0works with\u00a0cloud\u00a0providers such as Amazon Web Services<\/a>, Microsoft’s Azure<\/a> as well as Google\u00a0Cloud\u00a0and counts Morgan Stanley, BMW and LVMH among\u00a0its\u00a0customers.<\/p>\n

Wiz’s products will continue to be available across other major\u00a0cloud\u00a0services.\u00a0Alphabet\u00a0expects the\u00a0deal\u00a0to close in 2026, subject to regulatory approvals.\u00a0\u00a0<\/p>\n

“There will likely be a microscope on the\u00a0deal\u00a0by investors, given Google’s lackluster historical track record with\u00a0its\u00a0capital allocation plan, specifically around M&A,” said Dave Wagner, portfolio manager at Aptus Capital Advisors.<\/p>\n

Google’s\u00a0cloud\u00a0unit generated more than $40\u00a0billion (roughly Rs.\u00a03,46,023 crore) in revenue in 2024 and has outpaced growth in the company’s search business in recent years.\u00a0<\/p>\n

DA Davidson analyst Gil Luria said the higher price is based on another year of exponential growth for\u00a0Wiz.\u00a0<\/p>\n

“For Google to be able to compete with Microsoft Azure for enterprise customers, it needs to be able to offer a deeper suite of services, including\u00a0security\u00a0software,” he said.\u00a0<\/p>\n

Wiz\u00a0has agreed to a termination fee of more than $3.2\u00a0billion (roughly Rs. 27,681 crore), a source told Reuters, one of the highest fees in M&A history.\u00a0<\/p>\n

Interest in the cybersecurity\u00a0industry has risen since last year’s global CrowdStrike outage roiled operations across industries, prompting companies to spend more on safeguarding their online domains.<\/p>\n

The latest\u00a0deal\u00a0is another sign that Israel’s cybersecurity\u00a0industry punches well above\u00a0its\u00a0weight.<\/p>\n

Several\u00a0security\u00a0companies based in Israel or founded by Israelis have been acquired by Silicon Valley giants, including Siemplify, which was bought by\u00a0Alphabet\u00a0in 2022, and Own, which Salesforce acquired in 2024.<\/p>\n

Back in 2015,\u00a0Wiz’s founders sold\u00a0cloud\u00a0security\u00a0firm Adallom to Microsoft.<\/p>\n

Regulatory Concerns<\/strong><\/p>\n

Google has emphasized that\u00a0Wiz\u00a0would continue working with competing\u00a0cloud\u00a0platforms \u2014 potentially in a bid to head off regulatory concerns.\u00a0<\/p>\n

Interoperability has been a major theme in recent antitrust cases, including the U.S. Department of Justice’s existing case over Google’s ad tech. The FTC is pursuing an antitrust investigation into Microsoft’s\u00a0cloud\u00a0computing business.<\/p>\n

“Generally speaking, Google is not a leader in the\u00a0cloud\u00a0business, and\u00a0Wiz\u00a0will still be available on all other\u00a0cloud\u00a0services,” said Elise Phillips, policy counsel at Public Knowledge, a public interest advocacy group.\u00a0<\/p>\n

“Any type of exclusivity agreement between the two of them down the line would give me cause for concern.”<\/p>\n

The DOJ is pushing for measures, including a sale of\u00a0its\u00a0Chrome browser, to address what a judge said was an illegal search monopoly.<\/p>\n

“This (deal) will be a big test for pro-business advocates,” said Aptus Capital’s Wagner.\u00a0<\/p>\n

Google had $23.47\u00a0billion (roughly Rs.\u00a02,03,040 crore) in cash and cash equivalents as of December 31, implying it might have to seek financing for the\u00a0deal.\u00a0<\/p>\n

\u00a9 Thomson Reuters 2025<\/em><\/p>\n

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)<\/i><\/p>\n<\/div>\n


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Alphabet\u00a0will\u00a0buy\u00a0fast-growing startup\u00a0Wiz\u00a0for about $32\u00a0billion (roughly Rs.\u00a02,76,784 crore) in\u00a0its\u00a0biggest\u00a0deal\u00a0ever, the Google parent said Tuesday, as it doubles down on cybersecurity\u00a0to sharpen\u00a0its\u00a0edge in the\u00a0cloud-computing race against Amazon.com and Microsoft. The blockbuster\u00a0deal\u00a0will make\u00a0Wiz\u00a0part of Google’s\u00a0cloud\u00a0unit and strengthen the company’s efforts in cybersecurity\u00a0solutions that companies use to remove critical risks. Its\u00a0high price and unusually big breakup fee suggest\u00a0Alphabet\u00a0is comfortable […]<\/p>\n","protected":false},"author":2,"featured_media":262068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/i.gadgets360cdn.com\/large\/google_1001_n_shoreline_reuters_1647670438413.jpg","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[1102,201917,1424,1289,4222,2698,2600,2294,1098,2441,80692],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/262067"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=262067"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/262067\/revisions"}],"predecessor-version":[{"id":262069,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/262067\/revisions\/262069"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/262068"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=262067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=262067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=262067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}