Google's $32 Billion Wiz Purchase: Strategic Imperative Or Overreach?

Forbes

24-03-2025

Google's $32 Billion Acquisition of Wiz Aims to Strengthen Its Cloud Security Portfolio and ... More Competitive Position
On March 19, 2025, Google formally announced its intent to acquire cloud security firm Wiz for a staggering $32 billion in cash. The announcement made headlines not only for its size but for the extraordinary revenue multiple attached. Wiz's annual recurring revenue at the time of acquisition was reported between $700 million and $800 million, with projections to surpass $1 billion by year-end. That equates to a revenue multiple between 45x and 65x — placing the deal among the highest-priced cybersecurity acquisitions in history.
Founded in 2020, Wiz specializes in Cloud-Native Application Protection, offering agentless, real-time visibility and control over vulnerabilities, misconfigurations, and access permissions across public cloud environments. In five short years, the company scaled at an unprecedented pace — achieving $100 million ARR in 18 months and reaching a $12 billion private valuation by 2024.
Wiz's platform is now deployed by over half of Fortune 100 companies, as well as governments and startups. Its competitive edge lies in the simplicity and breadth of its platform — securing workloads across all major clouds (AWS, Azure, Google Cloud) without friction.
From a financial perspective, the 50x multiple seems difficult to justify. However, Google's potential strategic motivations reveal the broader rationale behind this bold move:
One of the unanswered questions surrounding the deal is whether Wiz will retain its operational independence post-acquisition. While Google's announcement stated Wiz will continue operating independently until regulatory approvals are finalized, it is expected that Wiz will be folded into Google Cloud thereafter. There is no defined leadership role for CEO Assaf Rappaport within Google beyond the transition period, which could raise concerns about product focus and leadership continuity. Mind you, this is Rappaport's second blockbuster exit — he previously sold Adallom to Microsoft in 2015, a transaction that significantly bolstered Microsoft's cloud security capabilities.
Moreover, while Google asserts that Wiz's solutions will remain cloud-agnostic, it is unclear how competitors such as Microsoft and AWS will respond — or if they will continue supporting Wiz on their platforms. Their willingness to support a solution that enhances Google's market position is highly in doubt.
Ultimately, whether this deal delivers long-term value will be determined by Google's execution and ability to integrate Wiz into GCP. On paper, the revenue multiple is very steep. But if Wiz enables Google Cloud to win more enterprise customers, enhance security trust, and close the competitive gap with Microsoft and AWS, the acquisition may be seen in hindsight as a bold but necessary move.
In today's cybersecurity and cloud landscape, value is not always found on the balance sheet — it is often measured in strategic positioning and long-term market control. Time will tell whether Google's $32 billion bet will pay off.