According to sources familiar with the matter, Google's parent company Alphabet plans to acquire cybersecurity startup Wiz for approximately $30 billion and is currently in deep negotiations.
The Wall Street Journal cited sources saying this would be the largest deal in Google's history and could be finalized soon, unless unexpected obstacles arise at the last minute, similar to those that previously caused deals to fall through.
The Wall Street Journal previously reported that Alphabet came close to acquiring Wiz for about $23 billion last summer. However, negotiations ultimately broke down, partly due to concerns from Wiz and some of its investors about the lengthy regulatory review process and other issues.
Analysts believe that bankers and CEOs had hoped for large deals this year, but market volatility and political turmoil in the U.S. have undermined confidence. If Google proceeds with its largest deal ever, which is also one of the largest deals of the year, it will serve as a litmus test for the Trump administration's antitrust stance and provide a barometer for other tech deals.
<h2>Google's AI Cloud Computing Needs</h2>
Media reports suggest that this acquisition could help Alphabet achieve greater breakthroughs in the cloud computing sector. Despite rapid growth and critical importance, Google has lagged behind competitors in this field. The enhanced security features offered by Wiz could help Google attract more customers in this competitive market, especially given the surge in demand for computing power from generative AI companies.
If the acquisition goes through, the deal size will far exceed Google's largest acquisition to date, surpassing the $12.5 billion spent on Motorola in 2012. Prior to this, Google's acquisition actions included the $2.1 billion acquisition of Fitbit in 2021 (which faced regulatory hurdles after being announced) and the $3.2 billion acquisition of Nest Labs in 2014. Other acquisitions by Google in recent years include YouTube, DoubleClick, Looker, and Waze.
As Google moves forward with this acquisition, it will face scrutiny from regulatory agencies. Currently, Google is embroiled in two antitrust lawsuits. One involves its search business, where a judge has ruled that it constitutes a monopoly, and both parties are awaiting a remedy trial, after the Biden administration proposed requiring Google to divest its Chrome browser. The other lawsuit involves Google's advertising technology business, which has concluded its hearings and is awaiting a final ruling.
<h2>The Rise of Wiz</h2>
Since its founding in 2020 by CEO Assaf Rappaport and several colleagues, Wiz's valuation has rapidly climbed, making it one of the fastest-growing startups in history. According to media reports, the company was valued at $16 billion during an employee stock buyback transaction at the end of last year.
Wiz's investors include well-known Silicon Valley venture capital firms such as Sequoia Capital, Andreessen Horowitz, Index Ventures, and Greenoaks.
In July of last year, Wiz CEO Rappaport stated in an email to employees that the company plans to conduct an initial public offering (IPO)
However, according to sources familiar with the matter, due to the sluggish IPO market over the past year, Wiz has since re-engaged in merger and acquisition negotiations with multiple parties.
The Wall Street Journal previously reported that one of the reasons for the breakdown in acquisition talks with Google was the failure of both parties to agree on whether Wiz should continue to operate as an independent business unit or be integrated into Google's cloud computing business.
<h2>Antitrust Regulatory Challenges</h2>
Currently, only a few companies are testing the stance of antitrust regulators this year.
Analysts believe that if Wiz is successfully acquired, it will send a positive signal to the venture capital industry. In recent years, the IPO market and merger transactions have been in a prolonged slump, making it difficult for venture capital firms to achieve investment returns.
Previously, there was widespread expectation that the Trump administration would take a relatively lenient approach to merger regulation, which encouraged dealmakers when Trump took office in January. However, there are still some within the U.S. government who are skeptical of large tech companies, including Vice President Vance.
Additionally, the early actions of U.S. antitrust agencies have surprised the market. Andrew Ferguson, the chair of the Federal Trade Commission (FTC) appointed by Trump, has disappointed Wall Street by announcing that he would maintain the strict merger regulatory guidelines set by his predecessor, Lina Khan, which grant enforcement agencies greater power to block transactions and exhibit a certain populist tendency

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Analysis suggests that if this acquisition is successful, it may help Alphabet achieve greater breakthroughs in the cloud computing sector, and it will serve as a litmus test for the Trump administration's antitrust stance, providing a barometer for other technology merger and acquisition transactions

- Alphabet, Google's parent company, is in advanced talks to acquire cybersecurity startup Wiz for approximately $30 billion, which would be its largest deal to date.  
- The acquisition could enhance Google's position in the competitive cloud computing market, where it has lagged behind rivals, particularly as demand for AI capabilities surges.  
- If successful, this deal may signal a shift in antitrust attitudes and provide a boost to the struggling IPO and M&A markets, despite ongoing regulatory scrutiny faced by Google.

Google's largest acquisition in history is nearing completion! Media reports a $30 billion acquisition of cybersecurity startup Wiz