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Google’s parent company, Alphabet, has announced its biggest-ever acquisition by purchasing cybersecurity startup Wiz for $32 billion. This all-cash deal aims to strengthen Google Cloud’s security capabilities and help it compete with Amazon Web Services (AWS) and Microsoft Azure.
Initially, Google had offered $23 billion for Wiz in 2023, but the deal fell through due to concerns over regulatory issues. Wiz then shifted focus to preparing for an initial public offering (IPO). However, with changes in policies and growing investor confidence under Donald Trump’s administration, Google successfully completed the deal.
Why Did Google Buy Wiz?
Wiz is one of the fastest-growing cybersecurity startups, valued at $12 billion in May 2023. The company provides AI-driven cloud security solutions that help businesses detect and prevent cyber threats.
Interest in cybersecurity has surged, especially after a major outage at CrowdStrike last year, which disrupted industries worldwide. As businesses increasingly invest in protecting their digital assets, Wiz has become a valuable addition to Google’s security portfolio.
In 2022, Google acquired Mandiant for $5.4 billion, outbidding Microsoft. Now, with Wiz under its umbrella, Google has further strengthened its position in the cybersecurity sector.
Impact of the Deal
Despite the strategic importance of the acquisition, Alphabet’s shares dipped slightly in premarket trading. While Google stock gained nearly 35% in 2023, it has dropped by 13% this year due to heavy investments in artificial intelligence.
Once the deal is finalized in 2026, Wiz will operate under Google Cloud but will continue offering its services on other major cloud platforms like AWS, Microsoft Azure, and Oracle Cloud. Currently, Wiz serves high-profile clients such as Morgan Stanley, BMW, and LVMH.
Alphabet’s Biggest Acquisitions
Alphabet has acquired over 200 companies to expand its technological reach. Some of its most notable deals include:
- YouTube (2006) – $1.65 billion: Transformed video sharing and digital advertising.
- DoubleClick (2007) – $3.1 billion: Revolutionized online display advertising.
- Motorola Mobility (2012) – $12.5 billion: Strengthened Google’s mobile hardware business.
- Waze (2013) – $966 million: Improved Google Maps with real-time traffic data.
- Nest Labs (2014) – $3.2 billion: Marked Google’s entry into smart home technology.
- Apigee (2016) – $625 million: Enhanced cloud services with API management.
- Looker (2020) – $2.6 billion: Improved business intelligence and analytics.
- Fitbit (2021) – $2.1 billion: Expanded Google’s presence in wearable health tech.
With Wiz now part of Alphabet, Google is making a strong push into cybersecurity, reinforcing its cloud security capabilities for the future.
