Google resumes talks to acquire cybersecurity firm Wiz for $30B
What's the story
Google's parent company Alphabet has resumed talks to acquire cloud cybersecurity start-up Wiz.
According to The Wall Street Journal, the tech giant had attempted to acquire Wiz last year at a valuation of $23 billion but couldn't seal the deal.
Now, the talks have resumed with a higher price tag of around $30 billion on the table.
This would be Google's largest acquisition ever, surpassing the $12.5 billion purchase of Motorola Mobility in 2012.
Acquisition strategy
Google's cloud division leading the acquisition efforts
Thomas Kurian, head of Google Cloud, is leading the acquisition efforts.
Wiz's cloud security products are seen as a strategic fit for Google's customer base.
Wiz has demonstrated impressive financial growth with an annual recurring revenue (ARR) of $500 million as of July 2023 and plans to hit $1 billion by 2025.
Wiz last raised external funding of $1 billion in May 2023 at a valuation of $12 billion, which subsequently rose to $16 billion in an employee tender offer.
Negotiation challenges
Previous negotiations faced hurdles
An acquisition at $30 billion would be a major premium for Wiz.
The previous negotiations were marred by challenges, including whether the company would operate independently or be fully integrated into Google Cloud.
Wiz's co-founder and CEO Assaf Rappaport had explained that the company turned down Google's offer in the past because it wanted to grow independently.
Regulatory scrutiny under the Biden administration also played a role in halting the deal last year, as per the WSJ report.