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In a game-changing move, Google has inked a definitive agreement to acquire Wiz, a fast-growing cloud security startup, for a staggering $32 billion in cash. This acquisition marks the largest in Google’s history and reinforces its commitment to strengthening cybersecurity amidst the rapid evolution of artificial intelligence. With Wiz set to become a key part of Google’s cloud division, the tech giant anticipates closing the deal by 2026, pending regulatory approval.
The acquisition comes after Wiz previously walked away from a $23 billion offer, opting instead to explore an IPO. However, with the public market remaining sluggish since 2022, and the regulatory climate shifting, the startup ultimately found Google’s offer too compelling to resist. “Becoming part of Google Cloud is effectively strapping a rocket to our backs,” said Wiz co-founder Assaf Rappaport, emphasizing the acceleration in innovation the deal is expected to bring.
This high-profile purchase also highlights Google’s evolving acquisition strategy. While the company has historically steered clear of megadeals, its recent focus on cybersecurity investments—such as the $5.4 billion Mandiant acquisition in 2022—suggests a more aggressive approach to securing its cloud dominance. The move is also seen as a direct challenge to Microsoft, which has been expanding its own cloud security offerings. Despite concerns over Google’s market power, Wiz’s products will continue to operate on rival cloud platforms, including AWS and Microsoft Azure.
As Google navigates increased regulatory scrutiny, including a federal ruling declaring its search dominance a monopoly, the timing of this acquisition will likely attract significant attention. Meanwhile, Alphabet shares dipped 3% on Tuesday, extending the company’s 2024 decline. Nevertheless, with $96 billion in cash reserves and a strategic focus on cloud security, Google appears determined to fortify its position in the ever-intensifying tech battleground.
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(Source: Google Blog | MarketWatch)
