Why Alphabet wants to buy Wiz for $32 billion?

Alphabet, Google’s parent company, has announced plans to acquire cybersecurity firm Wiz for $32 billion in an all-cash deal, marking its largest acquisition to date. This move is aimed at strengthening Google's cloud business and enhancing its position in the competitive cloud computing market, where it faces stiff competition from Amazon Web Services (AWS) and Microsoft Azure.

The deal surpasses the $23 billion Google had previously offered for Wiz in 2024, a bid that fell through due to antitrust concerns. This time, with a potentially more lenient regulatory environment under the Trump administration, Wall Street analysts anticipate fewer hurdles for big-tech mergers. However, the acquisition is still subject to regulatory approval. Previously, Google’s largest purchase was Motorola Mobility for $12.5 billion in 2011.

Why Google Wants Wiz

Wiz, one of the fastest-growing software startups, specializes in cloud-based cybersecurity solutions and was valued at $12 billion in a funding round last May. The company works with major cloud providers, including AWS, Microsoft Azure, Oracle, and Google Cloud, serving clients like Morgan Stanley, BMW, and luxury brand LVMH.

Cybersecurity has become a major concern for businesses worldwide, especially following the global CrowdStrike outage in 2024 that disrupted multiple industries. As companies increase their investment in security, Google sees Wiz as a strategic asset to accelerate growth in two key areas: enterprise cloud computing and cybersecurity. While Google Cloud trails AWS and Azure in market share, Wiz’s AI-driven security solutions could give it a competitive edge.

“The increasing reliance on AI and cloud services has reshaped the security landscape, making cybersecurity more critical than ever in mitigating emerging threats and protecting national security,” Google stated in its announcement.

Google-Wiz Deal Timeline & Future Plans

Google Cloud CEO Thomas Kurian emphasized the alignment between Google Cloud and Wiz, saying, “We share a common goal of making cybersecurity more approachable and user-friendly for organizations of all sizes. By preventing cyberattacks in complex environments, we aim to reduce the costs and disruptions caused by security breaches.”

Although Google did not specify an exact timeline for the acquisition’s completion, Wiz is expected to integrate into Google’s cloud division while continuing to operate independently. Its products will remain available across all major cloud platforms. Additionally, Wiz plans to expand its workforce and explore further acquisitions to strengthen its offerings.

As Google deepens its investments in AI and cybersecurity, this acquisition signals a major push to bolster its cloud security portfolio and position itself as a leader in enterprise security solutions.