Alphabet Inc., the parent company of Google, is in talks to acquire cloud-security firm Wiz Inc. for $33 billion, marking what could be its largest-ever acquisition, as reported by The Wall Street Journal.
The revived talks follow a previous attempt last summer when negotiations fell apart after Wiz turned down a $23 billion offer, opting instead to remain independent and explore and initial public offering (IPO).
If finalized, the acquisition would bolster Google’s cloud business, helping it compete more aggressively against market leaders like Microsoft Corp. and Amazon.com Inc.
Google Cloud, which has recently turned profitable after years of losses, has experienced slowing sales growth, making the Wiz acquisition a strategic move to enhance its cybersecurity offerings.
Despite its potential benefits for Google, the deal could attract regulatory scrutiny. Competition watchdog in the U.S. and Europe have been increasingly cautious about large-scale acquisitions in the technology sector.
Alphabet is already facing multiple antitrust lawsuits, including a landmark ruling that found the company maintained an illegal monopoly in online search.
However, Google’s cloud business remains the third-largest player in the industry, trailing Microsoft and Amazon. This market positioning could help Alphabet argue that the Wiz deal does not significantly concentrate power in the cloud sector, potentially mitigating antitrust concerns.
Wiz, a cloud-security startup founded by Israeli entrepreneurs and headquartered in New York, is backed by prominent investors such as Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts.
In its last funding round, the company was valued at $12 billion, making Alphabet’s latest offer nearly three times that figure, the report added.