Tech Reporter

Alphabet, the parent company of Google, is in advanced talks to acquire the rapidly growing cybersecurity startup Wiz for approximately $23 billion.

This potential acquisition would mark Google's largest-ever purchase and a significant investment in the cybersecurity sector.

Wiz, known for its cloud computing cybersecurity software, has attracted Google's interest following its recent $1 billion funding round from venture capital investors earlier this year.

Though the terms are not yet finalized and the deal could still fall through, the discussions represent a bold move by Google.

If the acquisition proceeds, it would surpass Google's previous record purchase of Motorola for US$12.5 billion nearly a decade ago, which was later sold at a significant loss two years after the acquisition.

The US$23 billion valuation for Wiz is nearly double the US$12 billion valuation from its most recent funding round.

Alphabet has shown a keen interest in bolstering its cybersecurity capabilities, evidenced by its US$5.4 billion acquisition of cybersecurity firm Mandiant in March 2022.

 This move was part of Alphabet's strategy to enhance its cloud computing services and address increasing cyber threats.

Google Cloud is a pivotal component of Alphabet's efforts to diversify its revenue beyond its core search advertising business.

 Despite growth in cloud sales, Google has struggled to compete with Microsoft and Amazon in this space.

Acquiring Wiz would signify a significant challenge to its competitors, highlighting Google's commitment to strengthening its cybersecurity offerings to complement its cloud services.

The importance of cloud security has surged as companies increasingly migrate their data to cloud platforms.

If finalized, the acquisition would be a monumental success for Wiz and its founders—Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik—who met while serving in Unit 8200, the cyber intelligence division of the Israel Defence Forces.

Since its inception in March 2020 during the Covid-19 pandemic, the New York City-based Wiz has seen explosive growth, boasting that 40% of Fortune 100 companies are its clients.

Its notable customers include BMW, Slack, and Salesforce, and it collaborates with major cloud providers such as Amazon, Microsoft, and Google.