Google buys Wiz in its biggest acquisition ever

[Gigabyte Computer Solutions]

Google’s $32 Billion Cybersecurity Gamble: Smart Play or Overpriced Hail Mary?

The tech world just got its biggest deal of the year: Google’s parent company, Alphabet, is acquiring cybersecurity startup Wiz for a staggering $32 billion in cash—a move aimed at strengthening Google Cloud’s position in the highly competitive cloud computing market.

This isn’t just Google’s largest acquisition ever—it’s more than double what it paid for Motorola ($12.5 billion) and a bold bet on securing enterprise data.

So, What’s the Hype About Wiz?

Founded in 2020, New York-based (but Israeli-led) Wiz is one of the fastest-growing cybersecurity startups in history. Its tools protect cloud-stored data for major players, including Google, Amazon, and Microsoft. Despite being acquired, Wiz will continue selling its security products to Google’s competitors, though integrating its tech could help Google expand beyond its current 12% slice of the cloud market—still far behind Amazon Web Services (31%) and Microsoft Azure (21%).

Wall Street Isn’t Impressed
Despite the strategic play, Google’s stock slid 4% after the announcement—raising eyebrows over whether Alphabet is overpaying.

Here’s why:

• Wiz is targeting $1 billion in revenue this year, meaning Alphabet is paying 30x projected revenue, far above the typical 10x valuation for software firms.
• Alphabet also hiked its offer by 40% from last year after Wiz rejected a lower bid.
  The all-cash purchase will eat up nearly a third of Alphabet’s $96 billion reserves.

Regulatory Wild Card
Beyond the price tag, Alphabet could face regulatory headwinds. The Department of Justice recently doubled down on antitrust scrutiny, reviving calls for Google to spin off Chrome—and possibly Android. The deal’s fate under a potential second Trump administration remains unclear, but Alphabet has already agreed to a $3.2 billion breakup fee if regulators block the acquisition.

Big Bet or Expensive Misstep?
If Google plays this right, Wiz could be the missing puzzle piece in its cloud ambitions. But if the deal stumbles—either due to overpayment or regulatory hurdles—Alphabet’s gamble may go down as one of tech’s most expensive lessons.

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