--- title: "Prediction: Wiz Will Be a Game-Changing Acquisition for Alphabet" description: "Alphabet has acquired cybersecurity company Wiz for $32 billion, significantly increasing its investment from last year's offer of $23 billion. This acquisition enhances Alphabet's portfolio, adding a" type: "news" locale: "en" url: "https://longbridge.com/en/news/232700450.md" published_at: "2025-03-21T07:57:10.000Z" --- # Prediction: Wiz Will Be a Game-Changing Acquisition for Alphabet > Alphabet has acquired cybersecurity company Wiz for $32 billion, significantly increasing its investment from last year's offer of $23 billion. This acquisition enhances Alphabet's portfolio, adding a leader in cloud security, which is crucial as cybersecurity threats grow. Wiz's innovative platform will bolster Google Cloud's offerings and attract new enterprise customers. The deal, expected to close soon, marks Alphabet's largest acquisition to date and positions the company for accelerated growth in the booming cloud and AI sectors. Analysts suggest Alphabet's stock is undervalued, making it a strong buy. After trying and failing to acquire Wiz last year, **Alphabet** (GOOGL -0.65%) (GOOG -0.72%) has reached a deal to buy the fast-growing cybersecurity company. It is paying a steep price of $32 billion, up from the the $23 billion it offered last year. It will also pay Wiz employees $1 billion in retention bonuses. Wiz backed out of the deal last year over antitrust concerns, but expects a more favorable environment under the Trump administration. In my view, this deal looks like a game changer for Alphabet. Let's examine why. ## Adding to a collection of strong businesses The acquisition of Wiz adds yet another strong business to Alphabet. While best known for its Google search engine, Alphabet actually has a strong collection of market-leading and emerging businesses. It's the leading digital advertiser in the world, where it not only serves ads for Google, but for its other properties and third-party sites as well. Its YouTube streaming service is the most watched streaming platform in the U.S. and the fourth-largest digital advertising platform in the world. It owns the world's third-largest cloud computing company in Google Cloud, which has been its fastest-growing segment. It has also taken leading positions in emerging technologies such as quantum computing and autonomous driving with its Waymo unit. Wiz only adds to Alphabet's collection of leading tech businesses and further highlights that Alphabet is much more than search. In addition, it is purchasing a fast-growing company in a booming field. Wiz is a leader in cloud detection and response (CDR) security, where its Cloud Native Application Protection Platform (CNAPP) uses artificial intelligence (AI) to quickly scan and identify vulnerabilities across the cloud environment. Its platform connects to every cloud environment and covers every aspect of cloud security. It's also been developing new products as it continues to innovate. Two launched in the past year include a code-to-cloud security solution called Wiz Code, and a detection and response solution for SecOps (security operation) teams called Wiz Defend. This should help the company grow with its existing customer base over time as it adds more solution modules. Wiz counts the three biggest cloud computing companies -- Google Cloud, **Amazon**'s AWS, and **Microsoft**'s Azure -- among its customers, as well as half of the Fortune 100. Large enterprise customers include **Morgan Stanley**, **BMW,** and **LVMH**. Following the acquisition, Wiz will continue to partner with all cloud computing companies. However, owning Wiz should be a big boost to Alphabet's Google Cloud unit. It will strengthen Google Cloud's security offerings and should help differentiate it from the competition. Meanwhile, Alphabet will be able to sell Wiz's products into its large base of Google Cloud customers, as well. Google Cloud has been Alphabet's fastest-growing segment, with revenue climbing 30% last quarter and segment operating income soaring 142%. Wiz should only increase the attractiveness of its cloud offering, given its strong reputation as a cloud cybersecurity provider. Cybersecurity threats are not slowing, and with the growth of cloud computing and AI, this deal helps set Alphabet apart. Image source: Getty Images. ## Time to buy the stock The Wiz deal, assuming it closes, will be the largest in Alphabet's history. It's paying a hefty price tag believed to be around 60 times Wiz's 2024 annual recurring revenue of $500 million in 2024. However, Wiz has a very strong platform that is growing quickly, and Alphabet should be able to accelerate growth given its large installed Google Cloud customer base. The deal should also help make Google Cloud more attractive to potential enterprise customers. This could help bolster growth not just from selling Wiz solutions, but from attracting new customers to Google Cloud. Alphabet has done very well with acquisitions in the past, most notably with YouTube, which it acquired in 2006 for $1.65 billion. At the time, YouTube was an unprofitable start-up facing copyright concerns. It was also Alphabet's largest-ever acquisition when the deal closed. Last quarter alone, YouTube generated $10.5 billion in revenue. Together with its early acquisition of cybersecurity company Mandiant, a leading cyber threat intelligence company, Alphabet is creating a world-class cybersecurity business. This just adds another growth lever to the company. Given its growing array of top-notch businesses, Alphabet's stock is just way too cheap, trading at a forward price-to-earnings (P/E) ratio of under 18 times 2025 analysts' estimates. GOOGL PE Ratio (Forward) data by YCharts. Alphabet looks like a great buy at current levels, and once the dust from the market sell-off clears, investors should start to realize the extremely valuable set of assets the company has collected. The Wiz acquisition just adds to these strong businesses and should be a big growth driver in the years ahead. ### Related Stocks - [GOOGL.US - Alphabet](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US - Alphabet - C](https://longbridge.com/en/quote/GOOG.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | YouTube 稱部分用户在訪問其網站時遇到了問題 | 由奈良岡浩作報道，谷歌旗下的 YouTube 表示，一些用户在訪問該在線視頻分享平台時遇到了問題。YouTube 表示，其推薦系統出現了問題，導致視頻無法在 YouTube 上顯示，包括主頁和應用程序上。該視頻分享公司表示，主頁已恢復，但仍 | [Link](https://longbridge.com/en/news/276194395.md) | | 印度計劃建設規模龐大的 AI“數據城市” | 印度計劃在維沙卡帕特南建設一個龐大的 “數據城市”，以增強其人工智能能力，旨在與美國和中國競爭。該項目由安得拉邦信息技術部長納拉·洛克什（Nara Lokesh）領導，已獲得 1750 億美元的投資協議，其中包括谷歌的重大貢獻以及一個人工智 | [Link](https://longbridge.com/en/news/275992678.md) | | 谷歌 Pixel 10A 的預購將附贈一張價值 100 美元的禮品卡 | 谷歌已開啓 Pixel 10A 的預購，發售日期為 3 月 4 日。在亞馬遜或百思買預購這款售價 499 美元的手機可獲得 100 美元的禮品卡。或者，買家在亞馬遜購買時可以獲得一對黑曜石色的 Pixel Buds 2A。該手機配備 Gor | [Link](https://longbridge.com/en/news/276249297.md) | | Klarna 現已在英國成為 Google Pay 的支付選項 | Klarna 現在在英國作為 Google Pay 選項可用 | [Link](https://longbridge.com/en/news/276117579.md) | | 在 Boost Mobile 以$99.99 預購 Google Pixel 10a \| SATS 股票新聞 | Boost Mobile 宣佈開始接受 Google Pixel 10a（128GB）的預訂，價格為 99.99 美元，旨在讓高端技術變得更加可及。客户可以通過註冊 Boost Mobile Premium Unlimited Plan 來 | [Link](https://longbridge.com/en/news/276244974.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.