Alphabet will buy fast-growing startup wiz for about $ 32 billion (roughly Rs. 2,76,784 Crore) in its biggest deal Ever, The Google Parent Said TuesDay, AS It DOBLES DOWLES DOWLES DOWLES DOWLES DOWLES DOWLES DOWLES To sharpen its edge in the cloud-computing race against Amazon.com and Microsoft.
The blockbuster deal will make wiz part of Google’s Cloud Unit and Strengthen the company’s efforts in cybersecurity solutions that companes use to remove Critical Risks.
Its high price and unusually big breakup fee sugest alphabet is comfortable that the buy will pass muster with the white house, even as the trump admin from the inserted its insert Heavy scrutiny of big tech.
Shares of Alphabet Dipped Nearly Three Percent. The stock was down 13 percent this year before tuesday on worms over its heart ai spending against the Rise of China’s Lower-Cost Deepsek and A Pullback in Tech in Tech Gies THE PASTS THECH GINTS THE PASTSTS Years.
To nail down the acquisition, alphabet had to agree to a heavier price than last year’s $ 23 billion (roughly Rs.
It was valued at $ 12 billion (roughly Rs. 1,03,792 Crore) in a Private Funding Round Last May, with more than $ 500 Million (Roughly Rs. 4,324 Crore) in Annual Recurring Recurring Reveenue as of Mid-2024.
Sources said the two parties have kept in contact even after wiz’s rejection last year, as Google Cloud Ceo Thomas Kurian Remained Consentant in His Pursuit.
The Talks Pictic Pace in the Past Two Months After Donald Trump Returned to the White House, Sources Said, Requesting Anonymity to Discuss Private Matters.
Trump has said he would continue controlue heavy scrutiny on big tech, which began during his first term, thinking wall street expects a shift in anti -policies under the present, with the face Trade Commission, Andrew Ferguson, May Dial Back on Big M & A Regulation.
Wiz works with cloud providers such as amazon web services, microsoft’s azure as well as Google Cloud and Counts Morgan Stanley, BMW and Lvmh Among Its customers.
Wiz’s products will continue to be available access other major cloud services. Alphabet Expects the Deal to Close in 2026, Subject to Regulatory Approvals.
“There will likely be a microscope on the deal by investors, Given Google’s Lackluster Historical Track Record With its Capital Allocation Plan, Capital Allocation Plan, Specifically Around M & A,” SAID DAVE DAVE DAVE Portfolio Manager at Aptus Capital Advisors.
Google’s cloud unit generated more than $ 40 billion (roughly Rs.
Da davidson analyst gil luria said the higher price is based on another year of exponitive growth for wiz.
“For Google to be able to compete with Microsoft Azure for Enterprise Customers, It Needs to Be Able to Offer a Deeper Suite of Services, Incliding SOFTWARTY SOFTWARE,” He said.
Wiz has agreed to a termination fee of more than $ 3.2 billion (roughly Rs. 27,681 Crore), a source told reates, one of the highest fees in m & a history.
Interest in the Cybersecurity Industry Has Risen Since Last Year’s Global Crowdstrike Outage Roiled Operations Across Ecross Industries, Prompting Companies to Spend more on Safeguarding Their Online Domaine.
The latest deal is another sign that israel’s cybersecurity industry punches well about its weight.
Several Security Companies Based in Israel or Founded By Israelis Have Been Accquired by Silicon Valley Giats, Including Siemplife, which was bouted by alphabet in 2022, and what Salesforce acqured in 2024.
Back in 2015, wiz’s founders Sold Cloud Security Firm Adallom to Microsoft.
Regulatory concerns
Google has emphasized that wiz would continue working with competing cloud platforms – potentially in a bid to head off regulatory concerns.
Interoperability has been a Major Theme in Recent Antitrust Cases, Including the US Department of Justice’s existing case over Google’s ad tech. The ftc is pursuing an antitrust investigation into microsoft’s cloud computing business.
“General Speaking, Google is not a Leader in the Cloud Business, And Wiz will still be available on all other cloud services,” said elise phillips, policy counsel at public knowled Public Interest Advocacy group.
“Any type of exclusivity agreement
The doj is pushing for measures, including a sale of its chrome browser, to address what a Judge said was an illgal search monopoly.
“This (deal) will be a Big Test for Pro-Business Advocates,” said Aptus Capital’s Wagner.
Google Had $ 23.47 billion (roughly Rs. 2,03,040 Crore) in Cash and Cash Equivalents as of December 31, Implying it Might have to seek finance for the deal.
© Thomson Reuters 2025
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