Google Parent Alphabet Reportedly Eyes $23B Acquisition Of Cybersecurity Firm Wiz To Take On Microsoft And Amazon: Top Analyst Expects 'Flurry Of Tech M&A On The Horizon'
Google parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) is reportedly in talks to acquire cybersecurity startup Wiz Inc. in a deal valued at $23 billion.
What Happened: Alphabet’s acquisition of Wiz, a New York-based firm specializing in cloud storage security, is not yet confirmed and could still fall through.
If completed, the acquisition would be the largest ever for Alphabet, reported Bloomberg, citing people familiar with the matter.
Wiz, founded in 2020, was valued at $12 billion in a funding round in May. If the deal proceeds, it would follow Alphabet’s $5.4 billion acquisition of cybersecurity firm Mandiant Inc. in 2022.
Alphabet did not immediately respond to Benzinga’s request for comments.
The potential purchase of Wiz could strengthen Alphabet’s standing in the competitive cloud market, where it lags behind Microsoft Corp. (NASDAQ:MSFT) and Amazon.com Inc. (NASDAQ:AMZN).
According to analysts at Wedbush, this acquisition by Alphabet would indicate a major investment in the cybersecurity space to enhance its flagship Google Cloud Platform offering.
“This Wiz deal would clearly bolster the Google cloud offering and value proposition to enterprises,” the note read, adding, “We would expect a flurry of tech M&A on the horizon.”
According to Wedbush analysts, if Donald Trump wins the Presidential election in November, a more lenient Federal Trade Commission (FTC) and a friendlier political environment for deals could lead to an accelerated merger and acquisition landscape for Big Tech.
They predict that the Google-Wiz deal could be just the beginning of a massive M&A cycle for Big Tech in 2025.
Why It Matters: This news comes on the heels of Alphabet’s decision to withdraw from its planned acquisition of customer relationship management company HubSpot Inc.
Alphabet has been increasing its investment in its cloud customer business, including providing clients with more generative artificial intelligence tools.
The tech giant is also contending with several antitrust challenges, including a lawsuit by the U.S. Justice Department accusing it of abusing its dominant position in online search.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Unsplash
