09:59 am
What’s the story
Google is reportedly planning its largest startup acquisition to date, with a proposed $23 billion purchase of Wiz, a New York-based cloud cybersecurity startup.
The Wall Street Journal reports that this potential deal would nearly double the amount Google spent on Motorola Mobility in 2012.
If successful, it would be the highest sum the tech giant has ever paid for another company.
Strategic acquisition
Wiz’s role in strengthening Google’s cloud security
Wiz specializes in providing “siloed security tools and scanners” for the enterprise space.
The company claims to secure corporate cloud infrastructure by creating a “normalizing layer between cloud environments,” which enables businesses to quickly identify and eliminate critical risks.
This acquisition is seen as a strategic move against Microsoft, which has recently experienced several high-profile security breaches.
Previous acquisitions
Google Cloud’s security enhancement efforts
Google Cloud‘s chief, Thomas Kurian, is the driving force behind this acquisition attempt. If successful, it could bolster Google’s reputation as a secure cloud platform.
This follows Google’s previous acquisitions aimed at enhancing its cloud security, including a $500 million purchase of another cloud security startup in 2022 and the $5.4 billion acquisition of Mandiant, the company that discovered the SolarWinds hack later that year.
Antitrust concerns
Potential regulatory hurdles for Google-Wiz deal
The proposed acquisition is not yet finalized and could potentially face scrutiny from US regulators due to antitrust concerns.
The Biden administration has recently overseen significant antitrust action, including the Department of Justice’s lawsuit over Google’s Search deal with Apple and the Federal Trade Commission’s unsuccessful attempt to block Microsoft from buying Activision.
Business growth
Alphabet’s strategy to fortify cloud business
Alphabet, Google’s parent company, views this acquisition as an opportunity to strengthen its burgeoning cloud business.
In the first quarter of this year alone, Google’s cloud business grew 28% to $9.57 billion.
Wiz’s comprehensive approach to cloud security involves ingesting data from various platforms including Amazon Web Services, Microsoft Azure, and Google Cloud, and scanning it for security risk factors.
This post was originally published on the 3rd party site mentioned in the title of this this site