Google parent company relaunches negotiation talks for Wiz acquisition

Alphabet is yet again involved in advanced talks to acquire the cybersecurity startup Wiz. This time around, Google’s parent company is allegedly offering over $30 billion to acquire the Israeli company.

In July 2024, The Wall Street Journal reported that Alphabet and Wiz were negotiating the acquisition of the Israeli startup company. Sources told the news outlet that Alphabet was willing to pay $23 billion, the highest amount the tech company has ever paid for an acquisition.

The deal wasn’t officially confirmed by either party but was said to be finalized ‘very soon’.

However, out of the blue, the deal was dead in the water. Assaf Rappaport, CEO of Wiz, wrote the company was focusing on an initial public offering (IPO), as it had planned originally. He aimed to achieve an annual recurring revenue (ARR) of $1 billion.

“Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” he said.

Fast forward eight months and Alphabet is still interested in the Israeli cloud security company. People familiar with the matter told Reuters and The Wall Street Journal that the American tech company is willing to pay around $30 billion to buy Wiz.

According to sources, the deal hasn’t been signed yet and could still change.

Founded in 2020, Wiz is an Israeli cloud security company that offers an all-in-one approach to cloud computing security and helps companies identify and remove potential security risks. Almost half of all Fortune 100 companies entrust their cloud security to Wiz.

In 2023, Wiz generated about $350 million in revenue. In a private funding round in May 2024, Wiz was valued at $12 billion.

If the acquisition goes ahead, it would be beneficial to Alphabet’s cloud infrastructure business, which generated more than $42 billion in revenue last year.