Google to buy cybersecurity firm Wiz for $32B US in company's biggest ever deal

The Associated Press

· Posted: Mar 19, 2025 10:48 AM EDT | Last Updated: 9 minutes ago

Google's genitor company, Alphabet, has struck a woody to bargain cybersecurity steadfast Wiz for $32 cardinal US successful what would beryllium the tech giant's biggest-ever acquisition, a determination which comes astatine the aforesaid clip it's facing a imaginable breakup of its net empire.   

The projected takeover announced Tuesday is portion of Google's assertive enlargement into unreality computing during an artificial quality boom. The frenzy is driving request for information centres that supply the computing powerfulness for AI exertion and intensifying the contention successful that abstraction among Google and 2 different tech powerhouses, Microsoft and Amazon.

If the all-cash transaction is approved by regulators, Wiz volition articulation Google Cloud. Most of Alphabet's $350-billion US yearly gross inactive stems from its hunt and advertizing operations, but with the advent of AI, the unreality part has go a rising prima astatine Google.

Annual gross successful the part was $26.3 cardinal US successful 2022, and soared 64 per cent to $43.2 cardinal US past year.

The bid Tuesday, which would spell down arsenic the biggest-ever cybersecurity acquisition crossed the sector, easy eclipses the existent largest acquisition successful Google's 26-year past — a $12.5-billion US takeover of Motorola Mobility successful 2012 that didn't wage disconnected the mode that the Mountain View, Calif., institution had hoped. 

Wiz, a five-year-old startup founded by 4 longtime friends who met successful the Israeli service erstwhile they were inactive teenagers, is connected way for an estimated $1 cardinal US successful gross this year. After getting its commencement successful Israel successful 2020, Wiz present oversees an cognition that makes information tools protecting the accusation stored successful information centres from its existent office successful New York.

"Wiz and Google Cloud are some fuelled by the content that unreality information needs to beryllium easier, much accessible, much intelligent and democratized, truthful much organizations tin follow and usage unreality and AI securely," Wiz CEO Assaf Rappaport wrote successful a blog post.

In a Tuesday league call, Google CEO Sundar Pichai predicted Cloud division's summation of Wiz volition effect successful adjacent amended information astatine a little outgo than tin beryllium provided now. That prediction whitethorn person been aimed arsenic overmuch astatine regulators apt to scrutinize however the woody volition impact contention and pricing, arsenic it was at prospective customers.

Google had been courting Wiz for immoderate clip earlier yet settling connected a importantly higher terms than the reported $23-billion US bid that was rejected past July. 

Investors reacted coolly to Tuesday's news, arsenic they usually bash with high-price acquisitions, with Alphabet's shares declining two per cent. 

Some of Google's different acquisitions person turned into golden mines, astir notably its $1.76-billion US acquisition of online video pioneer YouTube successful 2006 and its $3.1-billion US takeover of advertizing exertion level DoubleClick successful 2008. A $5.4-billion US acquisition of different information firm, Mandiant, successful 2022 besides helped substance the caller maturation of Google's Cloud division, which posted an operating nett of $6.1 cardinal US past year.

Google's DoubleClick woody is present portion of an antitrust lawsuit filed by the U.S. Justice Department targeting Google's exertion for distributing ads crossed the internet. A ruling successful that case, involving allegations that Google illegally abused its powerfulness to manipulate integer advertisement prices, is expected this year.

Antitrust cases threatening Google's empire

Regulators successful the U.S. and overseas are targeting Google connected different fronts, too.

Last year, a national justice successful different lawsuit brought by the Justice Department concluded Google had turned its ubiquitous hunt motor into an amerciable monopoly. The penalization signifier of that proceedings begins adjacent month.

The Wiz woody volition besides get a adjacent look from antitrust regulators, owed to the imaginable interaction connected standalone cyber information vendors, arsenic good arsenic imaginable disruption for bigger rivals.

WATCH | Why the U.S. Justice Department is going aft Google: 

Antitrust concerns whitethorn person contributed to Wiz's withdrawal from income talks past twelvemonth portion past U.S. president Joe Biden's medication was seeking to artifact a assortment of tech deals. 

Agreeing to a merchantability present indicates some Google and Wiz are much assured the woody volition summation U.S. support nether the Trump administration, Mergermarket analysts Kevin Ketcham and Kevin McCaffrey wrote successful a enactment Tuesday.  

"The 2 sides apt wouldn't person struck the woody if they didn't astatine slightest spot a imaginable way to closing," they said.

But the concern watchdog radical Demand Progress Education Fund urged the Trump medication to artifact Google's takeover attempt.

"It's clip to amusement the nationalist whether they person the guts to measurement successful and halt a large food from being gobbled up by 1 of the biggest fishes successful the pond," said Emily Peterson-Cassin, the group's manager of firm power.

If the companies get the regulatory greenlight and conscionable respective conditions spelled retired successful their agreement, Google and Wiz expect the woody to adjacent successful 2026.