Alphabet Eyes Record $23 Billion Acquisition of Cybersecurity Startup Wiz

This is a deal of all deals for Google, breaking all records for their own acquisitions.

Alphabet Inc. (NASDAQ), the parent company of Google, is in advanced negotiations to acquire cybersecurity startup Wiz for approximately $23 billion, according to the Wall Street Journal. If finalized, this would be Alphabet’s largest acquisition to date, surpassing all previous deals.

JUST IN : GOOGLE IS IN TALKS TO BUY ISRAELI CYBERSECURITY STARTUP WIZ FOR A WHOPPING $23 BILLION DOLLARS

THIS WILL THE LARGEST ACQUISITION EVER IN GOOGLE’S HISTORY $GOOGL $GOOG pic.twitter.com/q10HnEvEBt

— GURGAVIN (@gurgavin) July 14, 2024

This development follows Alphabet’s decision to withdraw from acquiring HubSpot (NYSE), a company valued at over $24 billion. Antitrust concerns are believed to have played a significant role in this decision.

Wiz, founded in 2020 by CEO Assaf Rappaport, has demonstrated rapid growth. In 2023, the company reported annual recurring revenue of $350 million, a substantial increase from $100 million in its first 18 months. Earlier this year, Wiz raised $1 billion at a $12 billion valuation, making the potential $23 billion acquisition price nearly double its recent valuation.

Wiz has garnered support from prominent venture capital firms, including Sequoia Capital, Andreessen Horowitz, Index Ventures, and Lightspeed Venture Partners. Notably, Wiz has managed to secure funding at higher valuations in 2024 despite a challenging market for tech startups following the previous tech boom.

If the acquisition is completed, it will nearly double Alphabet’s previous largest acquisition, the $12.5 billion purchase of Motorola Mobility in 2012. Alphabet’s second-largest acquisition to date is its $5.4 billion purchase of cybersecurity firm Mandiant.

BREAKING: Google is in advanced talks to acquire the Israeli cybersecurity company Wiz for $23 billion, according to the Wall Street Journal.

𝑰𝒇 𝒄𝒐𝒎𝒑𝒍𝒆𝒕𝒆𝒅, 𝒕𝒉𝒊𝒔 𝒘𝒐𝒖𝒍𝒅 𝒃𝒆 𝒕𝒉𝒆 𝒍𝒂𝒓𝒈𝒆𝒔𝒕 𝒂𝒄𝒒𝒖𝒊𝒔𝒊𝒕𝒊𝒐𝒏 𝒊𝒏 𝑮𝒐𝒐𝒈𝒍𝒆’𝒔 𝒉𝒊𝒔𝒕𝒐𝒓𝒚. pic.twitter.com/ZKkrSFzMZ5

— Yaki Lopez🎗️ (@YakiLopez) July 14, 2024

Analysts at Wedbush have commented on the potential deal, describing it as a strategic move against competitors Microsoft (NASDAQ) and Amazon (NASDAQ). “For Google, this would be a shot across the bow at Microsoft and Amazon, making a major bet on the cybersecurity space to complement its flagship Google Cloud Platform (GCP) offering in the cloud,” stated a Wedbush analyst. “This acquisition would give Google an edge in cloud deployments and further monetize the cybersecurity cloud space, with still less than 50% of workloads globally on the cloud.”

The strategic importance and potential market impact of this acquisition have attracted significant attention from investors. Platforms like Investing.com’s ProPicks, which provide model portfolios identifying top stock picks, highlight the potential for substantial returns. Alphabet’s ongoing investments in growth sectors like cybersecurity could enhance its market position and offer lucrative opportunities for investors.

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

Major Points:

• Alphabet Inc. is in advanced talks to acquire cybersecurity startup Wiz for about $23 billion.
• This acquisition would be Alphabet’s largest ever, surpassing its $12.5 billion purchase of Motorola Mobility.
• Alphabet recently decided against acquiring HubSpot, influenced by antitrust concerns.
• Wiz, founded in 2020, has shown rapid growth, reporting $350 million in annual recurring revenue for 2023.
• Analysts view the potential acquisition as a strategic move against Microsoft and Amazon in the cybersecurity and cloud markets.

Conner T – Reprinted with permission of Whatfinger News