In a landmark move, Google’s parent company, Alphabet Inc., announced today that it has signed a definitive agreement to acquire New York-based cybersecurity startup Wiz for $32 billion in an all-cash transaction. This deal marks the largest acquisition in Google’s 26-year history, surpassing its previous record of $12.5 billion for Motorola Mobility in 2011, and underscores the tech giant’s aggressive push into cloud security amid growing demand driven by artificial intelligence and multicloud adoption.
The acquisition, confirmed on Tuesday, integrates Wiz into Google Cloud, bolstering its capabilities at a time when cybersecurity is increasingly critical for businesses and governments navigating a rapidly evolving digital landscape. Wiz, founded in 2020 by Israeli entrepreneurs Assaf Rappaport, Ami Luttwak, Yinon Costica, and Roy Reznik, has quickly risen to prominence with its innovative cloud security platform, serving major clients like Morgan Stanley, BMW, and Salesforce. The company’s technology provides real-time threat detection and prevention across multiple cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud itself.
“This acquisition accelerates two major trends in the AI era: improved cloud security and the ability to use multiple clouds seamlessly,” said Sundar Pichai, CEO of Google and Alphabet, in a statement. “By joining forces, Google Cloud and Wiz will provide organizations across the globe with more robust security tools and expanded options, empowering them to safeguard their digital ecosystems with greater confidence and flexibility..”
Wiz’s CEO, Assaf Rappaport, echoed this sentiment, emphasizing the company’s commitment to remaining a multicloud platform post-acquisition. “Becoming part of Google Cloud straps a rocket to our backs, accelerating our innovation faster than we could as a standalone company,” Rappaport said in a blog post. “We will continue supporting customers across all major clouds, ensuring they stay secure wherever they operate.”
The $32 billion price tag reflects Wiz’s meteoric growth. Just last year, the company rejected a $23 billion offer from Google, citing antitrust concerns and a preference for an initial public offering (IPO). Since then, Wiz’s valuation has soared, fueled by its reported $700 million in annual recurring revenue and a trajectory to hit $1 billion in 2025. The deal also includes $1 billion in retention bonuses for Wiz’s 1,700 employees, averaging over $588,000 per person, to ensure talent stays on board.
Analysts see this acquisition as a strategic countermove in the fiercely competitive cloud computing race, where Google trails giants like Amazon and Microsoft. “For Google to compete with Microsoft Azure and AWS for enterprise customers, it needs a deeper suite of services, including top-tier security software,” said Gil Luria, an analyst at D.A. Davidson. “Wiz gives them that edge.”
However, the deal’s path to completion is not without hurdles. Expected to close in 2026 pending regulatory approval, it faces scrutiny from the U.S. Federal Trade Commission (FTC) under new chair Andrew Ferguson. While the Trump administration is perceived as more merger-friendly than its predecessor, Ferguson has signaled a firm stance on Big Tech consolidation. Google’s recent antitrust challenges, including a 2024 ruling deeming its search engine a monopoly, could further complicate matters. To mitigate risks, the companies have agreed to a hefty $3.2 billion breakup fee—10% of the deal value—should regulators block the transaction.
The announcement sent Alphabet’s stock down nearly 3% in Tuesday morning trading, reflecting investor concerns over the high cost and regulatory uncertainty. Despite this, industry observers view the acquisition as a bold bet on the future of cloud security, potentially catalyzing more merger and acquisition activity in the tech sector after a sluggish period.
For Wiz’s founders and investors—including Sequoia Capital, Index Ventures, and Cyberstarts—the deal represents a staggering windfall, doubling the company’s $16 billion valuation from a secondary sale in 2024. It also cements Wiz’s status as one of the fastest-growing cybersecurity firms in history, having reached a $12 billion valuation in a $1 billion funding round less than a year ago.
As businesses increasingly rely on cloud infrastructure and AI, Google’s acquisition of Wiz signals a new chapter in its quest to dominate the enterprise market, though its success hinges on navigating a complex regulatory landscape in the months ahead.
