Google Revisits Deal to Buy Wiz at Higher Rate Google’s parent company Alphabet is again in advanced talks to acquire cloud cybersecurity startup Wiz, a person familiar with the deal told The Round Table. The two companies were close to securing a deal at a $23 billion valuation previous summer, nevertheless the transaction failed to materialize.
This time, the price being debated is higher, the person reported. A price of around $30 billion was stated by The Wall Street Journal.
Thomas Kurian, head of Google’s cloud division, is again leading the effort.
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Google Cloud sees Wiz’s cloud security products as a good fit for its customer base, and Wiz’s annual recurring revenue (ARR) is attractive too. This stood at $500 million most recent July, with plans to hit $1 billion in ARR in 2025.
Even albeit, $30 billion would likely be quite the premium price tag. Wiz closed its last outside funding round of $1 billion at a valuation of $12 billion previous May. Its valuation reportedly jumped to $16 billion in an employee tender offer late last year.
Although Wiz revealed it didn’t have plans to take itself public in 2025, it hired Fazal Merchant, a former executive at DreamWorks and Tanium as a chief financial officer. Sometimes hiring a CFO is a sign of getting books ready for a public offering.
One of the reasons the talks failed previously was the inability of the two companies to agree on whether Wiz would abide as a separate division or be integrated into Google Cloud, according to The Wall Street Journal.
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High regulatory scrutiny for enormous transactions during the Biden administration likewise contributed to the deal’s breakdown most recent summer, the person familiar with the deal said.
Other investors have informed The Round Table that they are seeing an increase in M&A activity. In most cases, the return to the negotiation table is correlated with the hope that FTC Chair Andrew Ferguson will be less restrictive on huge transactions than former Chair Lina Khan was, disclosed a person familiar with a spoonful of such negotiations.
The New York and Israel-based Wiz was founded in 2020 by four former Israeli military officers who previously co-founded a cloud cybersecurity company summoned Adallom that Microsoft later acquired for $320 million.
Wiz’s backers contain Andreessen Horowitz, Cyberstarts, Index Ventures, Greenoaks, Insight Partners, and Sequoia.
A spokesperson for Wiz ran low to comment on the deal conversations.
Category: World-News
Tag: Google Revisits Deal to Buy Wiz at Higher Rate
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Published 3/18/2025