Google bets on Wiz in its biggest deal yet

Google parent Alphabet announced signing a $32 billion all-cash deal to acquire cloud security firm Wiz, marking its largest acquisition yet.

Expected to close in 2026, the move aims to bolster the tech giant’s share in the global cloud services market, which is dominated by Amazon’s AWS (30%) and Microsoft Azure (21%). Google has 12% of the share.

The cloud industry brought in $330 billion in 2024, according to Statista, and continues to grow with heavy demand from AI services.

However, after the deal’s announcement, Google’s share dropped 2% as investors believe the tech giant overpaid. It is paying 40% more than it initially offered Wiz. The tech company’s shares are down 15% this year.

Investors also point out that Google closed 2024 with $96 billion, and paying Wiz $32 billion may prove costly.

Wiz, founded in 2020 by Israeli intelligence veterans, specializes in cloud security scanning and has grown rapidly. It says it generated ~$750 million in annual revenue. Analysts estimate this could be boosted to $1 billion with Google’s help.

However, regulatory concerns remain under the new Trump administration. Wiz previously rejected a $23 billion offer from Google, citing the same during the Biden era. If the deal falls through, Alphabet has agreed to pay the startup a $3.2 billion breakup fee.

To pacify scrutiny, Wiz will operate separately from Google, and its products will remain available on rival platforms like AWS and Azure.