Alphabet Inc., parent company of Google, is in advanced negotiations to acquire Israeli cloud cybersecurity startup Wiz in a deal valued at more than $30 billion, according to a person familiar with the matter. If finalized, the acquisition would mark Alphabet's largest-ever purchase and a significant expansion of its cloud infrastructure and security portfolio.
The Wall Street Journal first reported the renewed talks on Monday. A source confirmed the valuation, noting the current offer is roughly 30% higher than the $23 billion bid Alphabet made in mid-2024. That earlier deal was abandoned in July after Wiz expressed concerns that the transaction would not clear antitrust reviews under the Biden administration.
Neither Alphabet nor Wiz responded to requests for comment on the current negotiations. The source emphasized that discussions are ongoing and the final terms could still change.
Thomas Kurian, chief executive of Google Cloud, is reportedly leading the acquisition effort. Google views Wiz's cloud-native security platform as complementary to its own offerings, particularly as enterprises increasingly prioritize cybersecurity following last year's widespread CrowdStrike outage that disrupted businesses globally.
Wiz, founded in 2020 by four former Israeli military officers, provides cloud security tools powered by artificial intelligence. Its products are designed to identify and eliminate vulnerabilities across cloud environments, and they integrate with multiple cloud service providers including Amazon Web Services and Microsoft Azure.
The company's customer base includes major enterprises such as Morgan Stanley, DocuSign, and other Fortune 500 firms. Wiz currently employs approximately 900 people across the United States, Europe, Asia, and Israel, with previously announced plans to hire an additional 400 workers this year.
Wiz's financial performance has attracted considerable investor interest. The startup reported annual recurring revenue of $500 million as of July 2024 and has publicly stated its goal of reaching $1 billion ARR by 2025, according to TechCrunch.
The cybersecurity firm's last private funding round in May 2024 valued it at $12 billion. That valuation reportedly increased to $16 billion in a subsequent employee tender offer later that year. A $30 billion price tag would represent a substantial premium over both figures.
While Wiz announced last year that it was preparing for a potential IPO, hiring DreamWorks and Tanium veteran Fazal Merchant as CFO, sources familiar with the company indicated that the leadership remained open to strategic acquisition offers.
The previous breakdown in talks centered not only on regulatory challenges but also on disagreements regarding Wiz's operational independence. According to the Journal, the two sides failed to agree on whether Wiz would continue functioning as a standalone division or be fully integrated into Google Cloud.
Founded only four years ago, Wiz has rapidly become one of the most valuable private cybersecurity firms. Its backers include prominent venture capital firms such as Andreessen Horowitz, Sequoia Capital, Index Ventures, Insight Partners, and Cyberstarts. A Wiz spokesperson declined to comment on the current acquisition discussions.
