Google is contemplating a $23 billion acquisition of Wiz, a cloud cybersecurity startup with notable partners including Amazon and Oracle, according to The Wall Street Journal. If completed, this purchase would mark the largest in Google’s history, nearly double the $12.5 billion it paid for Motorola Mobility in 2012.
About Wiz
Based in New York City, Wiz provides “siloed security tools and scanners” tailored for enterprise use. The company’s approach to securing corporate cloud infrastructure involves creating a normalizing layer between different cloud environments, enabling businesses to swiftly identify and mitigate critical risks. This acquisition appears particularly aimed at countering the vulnerabilities seen in Microsoft’s cloud services, which have been subject to multiple high-profile security breaches recently.
Strategic Move for Google
Google Cloud’s head, Thomas Kurian, has been the driving force behind this potential acquisition, as reported by The New York Times. The move is seen as a strategy to reinforce Google’s reputation as a secure cloud platform. This is in line with Google’s previous acquisitions, including the $500 million purchase of a cloud security startup in 2022 and the $5.4 billion acquisition of Mandiant, a company known for uncovering the SolarWinds hack.
Potential Regulatory Challenges
Although the deal seems promising, it may face scrutiny from US regulators. The Biden administration has been active in antitrust actions, evidenced by the Department of Justice’s lawsuit over Google’s Search deal with Apple and the Federal Trade Commission’s attempt to block Microsoft’s acquisition of Activision. Therefore, while the acquisition “looks likely,” regulatory reviews could pose a significant hurdle.
Related Developments
In a related move, Google has expressed that the public sector could improve upon what it describes as Microsoft’s “security failures.” This acquisition aligns with that sentiment, positioning Google as a more secure alternative in the cloud services market.
If successful, the acquisition of Wiz would significantly bolster Google’s capabilities in cloud security, helping to solidify its position in the increasingly competitive cloud services industry.
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