Google is making headlines with its potential acquisition of Wiz, a cloud cybersecurity startup that could cost the tech giant $23 billion. This move would mark Google’s most expensive acquisition to date, nearly double what it paid for Motorola Mobility in 2012.
The decision to purchase Wiz seems to be a strategic move aimed at competing with Microsoft, which has recently faced numerous high-profile security breaches. Wiz specializes in providing “siloed security tools and scanners” for enterprises, helping them identify and eliminate critical risks within their cloud infrastructure.
Google Cloud’s Reputation
Google Cloud CEO Thomas Kurian is reportedly the driving force behind the acquisition attempt. If successful, this deal could enhance Google’s reputation as a secure cloud platform. This aligns with Google’s past acquisitions in the cybersecurity space, such as the half-billion dollar purchase of another cloud security startup in 2022 and the $5.4 billion acquisition of Mandiant, which uncovered the SolarWinds hack.
While the acquisition has been described as “likely” by sources, there is still a chance that it could fall through. Additionally, the deal may face scrutiny from US regulators, particularly in the current climate of increased antitrust actions. The Biden administration has already taken action against tech giants like Google and Microsoft, signaling a potential roadblock for this acquisition.
Google’s potential acquisition of Wiz could have far-reaching implications for the company’s cloud security offerings and competitive position in the market. However, the deal is not without its risks, both in terms of financial investment and regulatory challenges. Only time will tell if Google’s gamble on Wiz will pay off in the long run.
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