Google Acquires Wiz for $32 Billion to Strengthen Cloud Security

The Largest Acquisition in Google’s History

Google has made history with the acquisition of Wiz, a cloud security startup, for $32 billion. This marks the largest acquisition in the company’s history, surpassing its 2011 purchase of Motorola Mobility for $12.5 billion.

The deal is an all-cash transaction and includes a $1 billion employee retention bonus to ensure Wiz’s 1,700 employees stay on after the acquisition.

Google Acquires Wiz for $32 Billion to Strengthen Cloud Security

Wiz Remains an Independent Platform, Supporting All Cloud Providers

Despite being acquired by Google, Wiz will continue to operate as an independent platform, compatible with all cloud providers—not just Google Cloud. This strategy is similar to Microsoft’s acquisition of LinkedIn, where LinkedIn remained independent within Microsoft while gradually increasing its use of Microsoft services. A similar trajectory may occur with Wiz.

Why Does Google Want Wiz?

Google’s acquisition of Wiz serves two key objectives:

• Strengthening Google Cloud – Google still lags behind AWS and Microsoft Azure in the enterprise cloud market.

• Enhancing Cybersecurity Capabilities – Wiz is a fast-growing, high-potential cloud security platform with an annual recurring revenue (ARR) of $700 million, expected to reach $1 billion soon.

Additionally, the rise of AI and cloud services has made cloud security more critical than ever. Google aims to position Wiz at the forefront of cybersecurity defense against threats arising from AI and increased cloud adoption.

How Did This Deal Come About?

Google initially offered $23 billion for Wiz, but the deal fell through due to concerns over antitrust regulations and Wiz’s independence. However, after Wiz secured additional funding and increased its market valuation, Google returned to negotiations and ultimately closed the deal at $32 billion.

The Future of Wiz in Google Cloud

Thomas Kurian, CEO of Google Cloud, stated:

"Google Cloud and Wiz share a common vision of making cybersecurity accessible and helping businesses effectively defend against cyber threats."

The deal is still subject to regulatory approval and is expected to be finalized by 2026. If everything goes according to plan, Google will gain a crucial asset in competing with AWS and Microsoft Azure in the cloud market.

This acquisition marks a significant step for Google in enhancing its cloud and cybersecurity capabilities, with major implications for the cloud industry.

Sources: TechCrunch, Google Blog