Why it matters: This all-cash acquisition — Google's largest ever — represents a major strategic move to strengthen the company's cloud security offerings and better compete with AWS and Microsoft Azure in the enterprise market.
The big picture: Google is paying a significant premium for the five-year-old cloud security startup, which was previously valued at $16 billion, to gain stronger footing in cybersecurity while promising to maintain Wiz's multi-cloud capabilities.
By the numbers:
- $32 billion all-cash transaction (more than double Wiz's $12B valuation from May 2024)
- $3.2+ billion termination fee (among the highest in M&A history)
- $700 million current annual recurring revenue for Wiz
- 50% of Fortune 100 companies use Wiz's platform
Flashback: Google previously attempted to acquire Wiz for $23 billion in 2024, but talks collapsed over regulatory concerns, autonomy issues, and possibly price.
Between the lines: The acquisition signals Google's commitment to a multi-cloud approach, with Wiz CEO Assaf Rappaport stating, "Wiz needs to remain a multi-cloud platform" and promising continued support for AWS, Azure, and Oracle Cloud.
What they're saying: Google Cloud CEO Thomas Kurian emphasized shared vision, noting that together they'll "make cybersecurity more accessible and simpler to use for organizations of any size and industry."
Rappaport likened joining Google to "strapping a rocket to our backs," accelerating innovation beyond what Wiz could achieve independently.
The bottom line: The deal faces regulatory hurdles amid Google's ongoing antitrust battles, with closing expected in 2026. Wall Street reacted cautiously, with Alphabet shares dropping 3% following the announcement.
Google's massive investment represents both an opportunity to transform its cloud security business and a significant gamble as it navigates complex regulatory waters while trying to close the competitive gap with larger cloud providers.