Alphabet Inc., the parent company of Google, is reportedly in discussions to acquire cybersecurity startup Wiz Inc. in a deal that could amount to $23 billion, according to a source familiar with the matter who requested anonymity due to the sensitivity of the information. If finalized, this would mark Alphabet’s largest acquisition to date.
The talks are ongoing, and while no agreement has been reached yet, discussions could conclude without a deal, the source added.
Representatives for Alphabet and Wiz declined immediate comment, although the discussions were initially reported by the Wall Street Journal.
This potential acquisition comes shortly after Alphabet decided against pursuing an acquisition of HubSpot Inc., highlighting the unusual nature of such a sizable transaction for a major tech firm like Alphabet, particularly amidst heightened antitrust scrutiny.
Alphabet has been focusing on expanding its cloud customer business and enhancing its generative artificial intelligence capabilities. Despite facing antitrust challenges, including lawsuits from the US Justice Department related to its search dominance and digital advertising tools, Alphabet’s cloud unit has recently reported profitability after years of losses.
Wiz, established in 2020 and based in New York, specializes in cloud security and works with major providers like Amazon Web Services and Microsoft Azure to detect and mitigate cloud-based security risks. The company was valued at $12 billion in a funding round earlier this year, attracting investment from firms such as Andreessen Horowitz and Lightspeed Venture Partners.
For Alphabet, acquiring Wiz could bolster its position in the competitive cloud computing market, where it trails behind leaders like Microsoft and Amazon. This move underscores the growing importance of cloud services and generative AI tools, which rely heavily on secure and scalable cloud infrastructure.
If successful, the acquisition of Wiz would follow Alphabet’s $5.4 billion purchase of Mandiant Inc. in 2022, marking it as one of the company’s largest acquisitions since its acquisition of Motorola Mobility Holdings LLC in 2012.
