Google has announced that Wiz of Cybernetic Security Start for $ 32 billion is acquiring. The acquisition is the largest Alphabet parent company to date, more than duplicating its previous purchase of $ 12.5 billion of Motorola mobility in 2012. The company seems to have followed this agreement aggressively due to the growing demand for safe cloud services.
The increase in generative AI has led technological companies to hurry from cloud infrastructure, while the main security incidents, such as the interruption of the Crowdstrike last year, have increased concerns. Wiz software incorporates safety characteristics propelled by AI that identify critical risks in cloud infrastructure, allowing developers to remedy them before they become a problem.
If Wiz products are integrated, Google Cloud could obtain a significant advantage in a market where historically it has fallen behind Amazon Web Services and Microsoft Azure. In Google's announcement about the acquisition, he said that Wiz will provide its customers for improved and lower cost for multiple cloud and code environments.
Despite the acquisition, Wiz products will continue to run and will be available in all the main clouds, including Amazon Web Services, Microsoft Azure and Oracle Cloud Platforms.
In a press release about this acquisition news, Google Cloud CEO, Thomas Kurian, declared: “Google Cloud and Wiz share a joint vision to make cybersecurity more accessible and simple to use for organizations of any size and industry.” And, the CEO of Alphabet and the CEO of Google, Sussian Pichai, pointed out: “Together, Google Cloud and Wiz will turbocate improved cloud security and the ability to use multiple clouds.”
See: Crowdstrike vs Wiz: What does better security and cloud value offer?
WIZ's rejection of Alphabet's previous offer
When Wiz rejected Alphabet's offer of $ 23 billion in July 2024, the startup quoted concerns about anti -political scrutiny and disagreements about whether it would work as an independent division or would be completely integrated into Google Cloud, the Wall Street Journal reported at that time.
After the agreement collapsed, Wiz CEO, Assaf Rappaport, told employees that the company would seek an initial public offer, believing that it could achieve a higher assessment as an entity that quotes on the stock market (investors valued the company at $ 12 billion in May 2024). However, Rappaport clearly committed again to potential buyers since then.
Regulatory challenges and alphabet antitrust battles
Google said the agreement is subject to usual closing conditions, including regulatory approvals. Alphabet's previous offer faced obstacles due to the antitrust regulations imposed by the Biden Administration, as the Executive Competition Order, which requires strict fuse scrutiny, particularly in the technological sector.
Although it was speculated that the president of the United States, Donald Trump, could recover certain regulations to favor innovation, his administration has introduced tariffs that could increase costs for technological companies. This change in politics has caused investors to be cautious about the main acquisitions.
See: Trump import rates: how prices, jobs and commerce shake
Meanwhile, Google is currently facing two main anti -political demands in the United States. Last year, the Department of Justice demanded that Google disintegrate its Chrome browser, arguing that it has been taking advantage of the platform to channel users to their search engine, maintaining the domain in the online search. The company is now waiting for a remedy trial.
A verdict is also aware of whether Google illegally monopolized the digital advertising market through its advertising technology business, which has also received legal scrutiny in the United Kingdom and the EU. In August 2024, a federal judge of the United States also ruled that Google has the monopoly of general search services and text messages and has violated antimonopoly laws.
For more details about the acquisition, Alphabet's web transmission on the news will be available to see the next two weeks. SUCTAL PICHAI, Thomas Kurian, the CEO of Wiz, Assaf Rappaport, and Alphabet and Google Cfo Anat Ashkenazi discuss the transaction.
