Google is reportedly considering a groundbreaking acquisition, planning to spend $23 billion to purchase Wiz, a cloud cybersecurity startup with notable partners such as Amazon and Oracle, according to The Wall Street Journal. This acquisition would be nearly double the amount Google spent on Motorola Mobility in 2012, making it the largest purchase in the company’s history.
Based in New York City, Wiz specializes in providing “siloed security tools and scanners” for the enterprise sector. The company focuses on securing corporate cloud infrastructure by “creating a normalizing layer between cloud environments,” which allows businesses to “rapidly identify and remove critical risks.” This technology is particularly relevant given the increasing number of high-profile security breaches affecting major corporations.
The acquisition of Wiz appears to be a strategic move aimed at countering vulnerabilities, particularly those faced by Microsoft, which has recently dealt with several significant security breaches. This move aligns with Google’s broader efforts to position itself as a leader in cloud security.
Google’s interest in Wiz follows a pattern of significant investments in cloud security. In 2022, Google spent half a billion dollars on another cloud security startup and later acquired Mandiant for $5.4 billion. Mandiant is known for discovering the SolarWinds hack, a notable cybersecurity incident.
Thomas Kurian, the head of Google Cloud, has been instrumental in pushing for this acquisition, according to The New York Times. If successful, this deal could enhance Google’s reputation as a secure cloud platform provider, further distinguishing it from competitors.
While the deal “looks likely” according to The New York Times, it is not without potential obstacles. The acquisition may attract scrutiny from U.S. regulators, particularly in light of the Biden administration’s focus on antitrust actions. The Department of Justice has already sued Google over its Search deal with Apple, and the Federal Trade Commission attempted to block Microsoft’s purchase of Activision, although that effort ultimately failed.
Google’s potential acquisition of Wiz for $23 billion represents a significant strategic investment in cloud cybersecurity. If successful, it would not only be Google’s largest acquisition to date but also a bold statement of its commitment to leading the cloud security market. However, the deal’s success hinges on navigating regulatory challenges in an environment of increased antitrust scrutiny.
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