Alphabet, the parent company of Google, has resumed its plans to acquire the cloud cybersecurity startup Wiz, after their negotiations did not come to fruition last summer. In this renewed attempt, the offer is approximately 30 billion dollars (around 30.140 million EUR), which would make it Google’s biggest purchase to date.
In mid-July 2024, it was reported that Google was in talks with Wiz to acquire it for 21 billion dollars, a figure that doubled the startup’s valuation at the time (12 billion USD). However, Wiz ultimately rejected the offer and decided to focus on an initial public offering (IPO).
One of the reasons that led Wiz to make this decision was the issue of failing to reach an agreement on whether the startup would operate as an independent unit or be integrated into Google Cloud. Furthermore, the regulatory conditions under the Biden administration also impacted the negotiation, but it is expected that, on this occasion, the Trump administration will adopt a more flexible stance regarding the regulation of mergers.
At the end of 2024, the valuation of Wiz rose to 16 billion USD after a public acquisition offer for employees. TAn amount that continues to be far from the $32,000M at which the price has been established for its purchase by the technology company in this second attempt. Moreover, these 30 billion USD are well above the 12,5 billion dollars that Google paid for Motorola in 2011, marking its highest acquisition to date.
Incorporating Wiz’s technology would help boost Google’s cloud computing business, which currently faces fierce competition, and would enhance Wiz’s position in the global market. We must now wait to see if this second attempt will be successful.
Photo: GPT4
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