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Google Parent Alphabet in Talks to Acquire Cybersecurity Startup Wiz for $23 Billion

Google Parent Alphabet in Talks to Acquire Cybersecurity Startup Wiz for $23 Billion

Google’s parent company, Alphabet, is in advanced negotiations to acquire cybersecurity startup Wiz for approximately $23 billion. This deal, which would be Alphabet’s largest acquisition to date, is expected to be primarily funded in cash. Wiz, founded in Israel and now based in New York, provides cloud-based cybersecurity solutions using artificial intelligence for real-time threat detection and response.

This acquisition comes amid increased regulatory scrutiny of large tech companies under the Biden administration, which has expressed concerns about major tech firms expanding through acquisitions. If successful, this deal would represent a significant move by Alphabet to enhance its cybersecurity offerings.

Wiz, which generated about $350 million in revenue in 2023, works with 40% of Fortune 100 companies and collaborates with multiple cloud providers like Microsoft and Amazon. The company, valued at $12 billion after a recent $1 billion funding round, has about 900 employees globally and plans to add 400 more in 2024.

Alphabet’s potential acquisition of Wiz follows a series of significant deals in the tech sector this year, including Synopsys’ $35 billion acquisition of Ansys and Hewlett Packard Enterprise’s $14 billion purchase of Juniper Networks. The technology sector accounted for the largest share of mergers and acquisitions in the first half of the year, with deals totaling $327.2 billion, a 42% increase year-on-year.

However, Alphabet may face challenges from antitrust regulators in the U.S. and EU, which have been focusing on the competition risks associated with large acquisitions. Google is currently under scrutiny in a major antitrust case in the U.S., with the Department of Justice alleging that Google has maintained a monopoly in search engines and online advertising.

The Wall Street Journal first reported Alphabet’s discussions with Wiz, and neither company has commented on the potential deal. If finalized, this acquisition would position Google to strengthen its capabilities in the rapidly growing cybersecurity market.

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