Alphabet Resumes $30 Billion Acquisition Talks with Cybersecurity Firm Wiz
Alphabet, the parent company of Google, is reportedly in advanced negotiations to acquire the cloud cybersecurity startup Wiz for around $30 billion as reported by The Wall Street Journal. The deal, which had been under discussion last summer at a $23 billion valuation, fell through but is now back on the table at a higher price.
Talks to Acquire Wiz Resurface
Sources close to the negotiations revealed that the price now being discussed for Wiz is around $30 billion, up from the previous $23 billion valuation. This marks a significant increase, highlighting the value both companies place on the deal. Thomas Kurian, the head of Google Cloud, spearheads the acquisition talks.
According to a report by Tech Crunch, Google Cloud views Wiz’s cloud security products as a perfect complement to its existing offerings. Wiz’s annual recurring revenue (ARR) is particularly attractive, standing at $500 million last year, with expectations to reach $1 billion by 2025. These
Wiz’s Rapid Growth and Attractive Valuation
Wiz, a cybersecurity startup based in New York and Israel, has grown substantially since its founding in 2020. Initially valued at $12 billion following a $1 billion funding round last May, the company's valuation rose to $16 billion during an employee tender offer later that year. Although Wiz had no immediate plans for an initial public offering (IPO), the recent hiring of Fazal Merchant, a former executive at DreamWorks and Tanium, as CFO raised speculation that the company may be preparing its financials for a public listing.
Also read: Google’s Investment in AI Startup Anthropic Revealed in Court Documents
Previous Deal Breakdown and Regulatory Concerns
The previous acquisition talks between Google and Wiz faltered for various reasons, including the inability to agree on whether Wiz would remain an independent division or fully integrate into Google Cloud. Regulatory scrutiny from the Biden administration, especially surrounding large tech deals, also contributed to the deal's collapse last summer.
