Google is reportedly nearing a deal to purchase cybersecurity startup Wiz for $23 billion, making the acquisition the largest in the company’s history.
Big Tech companies are under growing scrutiny on both sides of the Atlantic, with regulators increasingly concerned with consolidation within various industries, a reduction in competition, and loss of choice for consumers. Despite the current climate, Google appears to be pushing ahead with an acquisition of Wiz in what would be the largest acquisition in the company’s history.
According to the Wall Street Journal, Wiz is one of the few companies outside of artificial intelligence to raise money in 2024 at a higher valuation, with it raising $1 billion this year at valuation of $12 billion. The company’s performance is an indicator of its success in the cybersecurity industry, as well as the growing need for such services as threat factors increase.
Google is likely interested in the startup to help bolster its own cloud efforts. Wiz primarily partners with cloud companies, helping them “secure everything they build and run in the cloud.” Google has been working to build its cloud business, but continues to be a third-place player, behind AWS and Microsoft. When he took over the job, Google Cloud CEO Thomas Kurian famously wanted to take the second-place slot in the market within five years, a goal that increasingly looks well out of reach.
Google has also been highly critical of Microsoft’s embarrassing security issues, releasing a detailed white paper on how the company’s own cloud-first approach and company culture has helped it offer a higher level of security than Microsoft. In view of its focus on security, Google is no doubt eager to maintain that lead, a goal which Wiz could help fulfill.
Only time will tell if regulators will approve the deal but, if they do, it could mark a significant shift in cloud cybersecurity.
from WebProNews https://ift.tt/8WxAm6e
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