Google’s parent company, Alphabet, has entered into an agreement to acquire cybersecurity firm Wiz for $32 billion, marking the largest acquisition in the company’s history. The move comes as Google continues its aggressive expansion into cloud computing amid the growing influence of artificial intelligence (AI) and heightened regulatory scrutiny.
The acquisition, which is subject to regulatory approval, would integrate Wiz into Google Cloud, further strengthening its security capabilities. While the majority of Alphabet’s annual revenue—totaling approximately $350 billion—still comes from search and advertising, the cloud division has experienced rapid growth, generating $43.2 billion in revenue last year, a 64% increase from 2022.
Wiz, founded in 2020, specializes in cloud security solutions designed to protect data stored in data centers. Originally launched in Israel, the company now operates out of its New York headquarters and is projected to reach $1 billion in revenue this year.
The transaction, if completed, would surpass Google’s previous record-breaking acquisition of Motorola Mobility for $12.5 billion in 2012. Other notable acquisitions, such as YouTube in 2006 and DoubleClick in 2008, have proven highly profitable for the company, while the 2022 purchase of Mandiant for $5.4 billion contributed significantly to Google Cloud’s growth.
Despite the strategic importance of the deal, investor reactions have been cautious, with Alphabet’s stock declining by 2% following the announcement. The deal is also expected to undergo intense regulatory scrutiny, particularly in light of ongoing antitrust cases against Google. The US Justice Department is currently pursuing legal action against the company over alleged monopolistic practices in the digital advertising sector, while a separate case involving Google’s search dominance is also underway.
The Wiz acquisition is anticipated to face close examination from regulators, given its potential impact on competition within the cybersecurity industry. Last year, the company reportedly rejected a $23 billion bid, potentially due to concerns over regulatory hurdles. However, the current agreement signals increased confidence from both parties that approval can be secured.
If regulatory clearances are obtained and all conditions are met, Google and Wiz expect the acquisition to be finalized by 2026. However, opposition from consumer advocacy groups may pose additional challenges, with calls for authorities to intervene and prevent further consolidation in the tech sector.
