Google is reportedly considering its largest startup acquisition to date, with plans to purchase Israeli cloud cybersecurity firm Wiz for an estimated $23 billion, according to reporting from The Wall Street Journal. The potential deal, if successful, would mark a significant expansion of Google's presence in the enterprise security sector.
The Verge reports that the New York City-based Wiz specializes in providing "siloed security tools and scanners" for enterprise clients. The company's technology creates a "normalizing layer between cloud environments," allowing businesses to quickly identify and address critical security risks within their cloud infrastructure. This potential deal comes at a time when competitor Microsoft has faced several high-profile security breaches, potentially giving Google an opportunity to position itself as a more secure alternative in the cloud services market.
The acquisition, which would dwarf Google's previous record $12.5 billion purchase of Motorola Mobility in 2012, appears to be driven by Google Cloud CEO Thomas Kurian. The Wiz acquisition would follow Google's recent investments in cybersecurity, including the $500 million purchase of another cloud security startup in 2022 and the $5.4 billion acquisition of Mandiant, the firm that uncovered the SolarWinds hack. The New York Times cites Kurian as the primary force behind the acquisition attempt, suggesting that the move is part of a broader strategy to bolster Google's reputation as a secure cloud platform provider.
BDS people are going to cry so hard.
Google is nearing a deal to purchase Israeli cybersecurity startup Wiz for $23 billion. pic.twitter.com/hk4FJtLKcV
— Aviva Klompas (@AvivaKlompas) July 14, 2024
While sources suggest the deal "looks likely," according to The Times, it's not without potential hurdles. The massive price tag and Google's market position could trigger reviews from US regulators, particularly given the Biden administration's increased focus on antitrust actions in the tech sector. The Department of Justice has already filed a lawsuit over Google's search deal with Apple, and the Federal Trade Commission recently attempted to block Microsoft's acquisition of Activision, highlighting the current regulatory climate for major tech acquisitions.
