Latest news with #AssafRappaport
Forbes
24-03-2025
- Business
- Forbes
Google's $32 Billion Wiz Purchase: Strategic Imperative Or Overreach?
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.
CBC
19-03-2025
- Business
- CBC
Google to buy cybersecurity firm Wiz for $32B US in company's biggest ever deal
Google's parent company, Alphabet, has struck a deal to buy cybersecurity firm Wiz for $32 billion US in what would be the tech giant's biggest-ever acquisition, a move which comes at the same time it's facing a potential breakup of its internet empire. The proposed takeover announced Tuesday is part of Google's aggressive expansion into cloud computing during an artificial intelligence boom. The frenzy is driving demand for data centres that provide the computing power for AI technology and intensifying the competition in that space among Google and two other tech powerhouses, Microsoft and Amazon. If the all-cash transaction is approved by regulators, Wiz will join Google Cloud. Most of Alphabet's $350-billion US annual revenue still stems from its search and advertising operations, but with the advent of AI, the cloud division has become a rising star at Google. Annual revenue in the division was $26.3 billion US in 2022, and soared 64 per cent to $43.2 billion US last year. The bid Tuesday, which would go down as the biggest-ever cybersecurity acquisition across the sector, easily eclipses the current largest acquisition in Google's 26-year history — a $12.5-billion US takeover of Motorola Mobility in 2012 that didn't pay off the way that the Mountain View, Calif., company had hoped. Wiz, a five-year-old startup founded by four longtime friends who met in the Israeli army when they were still teenagers, is on track for an estimated $1 billion US in revenue this year. After getting its start in Israel in 2020, Wiz now oversees an operation that makes security tools protecting the information stored in data centres from its current headquarters in New York. "Wiz and Google Cloud are both fuelled by the belief that cloud security needs to be easier, more accessible, more intelligent and democratized, so more organizations can adopt and use cloud and AI securely," Wiz CEO Assaf Rappaport wrote in a blog post. In a Tuesday conference call, Google CEO Sundar Pichai predicted Cloud division's addition of Wiz will result in even better security at a lower cost than can be provided now. That prediction may have been aimed as much at regulators likely to scrutinize how the deal will affect competition and pricing, as it was at prospective customers. Google had been courting Wiz for some time before finally settling on a significantly higher price than the reported $23-billion US bid that was rejected last July. Investors reacted coolly to Tuesday's news, as they usually do with high-price acquisitions, with Alphabet's shares declining two per cent. Some of Google's other acquisitions have turned into gold mines, most notably its $1.76-billion US purchase of online video pioneer YouTube in 2006 and its $3.1-billion US takeover of advertising technology platform DoubleClick in 2008. A $5.4-billion US purchase of another security firm, Mandiant, in 2022 also helped fuel the recent growth of Google's Cloud division, which posted an operating profit of $6.1 billion US last year. Google's DoubleClick deal is now part of an antitrust case filed by the U.S. Justice Department targeting Google's technology for distributing ads across the internet. A ruling in that case, involving allegations that Google illegally abused its power to manipulate digital ad prices, is expected this year. Antitrust cases threatening Google's empire Regulators in the U.S. and abroad are targeting Google on other fronts, too. Last year, a federal judge in another case brought by the Justice Department concluded Google had turned its ubiquitous search engine into an illegal monopoly. The penalization phase of that trial begins next month. The Wiz deal will also get a close look from antitrust regulators, due to the potential impact on standalone cyber security vendors, as well as potential disruption for bigger rivals. WATCH | Why the U.S. Justice Department is going after Google: The U.S. DOJ wants to break up Google. Here's how | About That 4 months ago Duration 9:21 The U.S. Department of Justice proposed a major breakup of Google to address its illegal monopoly in the online search market. Andrew Chang breaks down the request and explains why the Department of Justice wants to force Google to sell its Chrome web browser — and possibly more. Antitrust concerns may have contributed to Wiz's withdrawal from sales talks last year while then U.S. president Joe Biden's administration was seeking to block a variety of tech deals. Agreeing to a sale now indicates both Google and Wiz are more confident the deal will gain U.S. approval under the Trump administration, Mergermarket analysts Kevin Ketcham and Kevin McCaffrey wrote in a note Tuesday. "The two sides likely wouldn't have struck the deal if they didn't at least see a potential path to closing," they said. But the business watchdog group Demand Progress Education Fund urged the Trump administration to block Google's takeover attempt. "It's time to show the public whether they have the guts to step in and stop a big fish from being gobbled up by one of the biggest fishes in the pond," said Emily Peterson-Cassin, the group's director of corporate power. If the companies get the regulatory greenlight and meet several conditions spelled out in their agreement, Google and Wiz expect the deal to close in 2026.
Yahoo
19-03-2025
- Business
- Yahoo
Google to buy cybersecurity firm Wiz for $32 billion in the biggest deal in company's history
SAN FRANCISCO (AP) — Google has struck a deal to buy cybersecurity firm Wiz for $32 billion in what would be the tech giant's biggest-ever acquisition at the same time it's facing a potential breakup of its internet empire. The proposed takeover announced Tuesday is part of Google's aggressive expansion into cloud computing during an artificial intelligence boom. The frenzy is driving demand for data centers that provide the computing power for AI technology and intensifying the competition in that space among Google and two other tech powerhouses, Microsoft and Amazon. If the all-cash transaction is approved by regulators, Wiz will join Google Cloud — an increasingly important part of its business separate from the search and advertising operations that account for most of the $350 billion annual revenue at Google's parent company, Alphabet. With the advent of AI, however, the cloud division has become a rising star at Google. Annual revenue in the division was $26.3 billion in 2022, and soared 64% to $43.2 billion last year. Wiz, a five-year-old startup founded by four longtime friends who met in the Israeli army when they were still teenagers, is on track for an estimated $1 billion in revenue this year. After getting its start in Israel in 2020, Wiz now oversees an operation that makes security tools protecting the information stored in data centers from its current headquarters in New York. 'Wiz and Google Cloud are both fueled by the belief that cloud security needs to be easier, more accessible, more intelligent, and democratized, so more organizations can adopt and use cloud and AI securely,' Wiz CEO Assaf Rappaport wrote in a blog post. In a Tuesday conference call, Google CEO Sundar Pichai predicted Cloud division's addition of Wiz will result in even better security at a lower cost than can be provided now. That prediction may have been aimed as much at regulators likely to scrutinize how the deal will affect competition and pricing, as much as at prospective customers. Google had been courting Wiz for some time before finally settling on a price that's much richer than a reported $23 billion bid that was rejected last July. At that time, Wiz signaled it would instead pivot back to a previously-planned initial public offering. But recent volatility in the stock market has chilled the IPO market, and now Rappaport said Wiz expects to 'innovate even faster' by becoming a part of Google. Wedbush analysts called Google's move to buy Wiz 'a shot across the bow' at other tech giants, particularly Microsoft and Amazon, who have already made big bets on cyber security as the fight to dominate cloud computing intensifies. Google had fallen behind its competition in the cloud space, Wedbush said, but the acquisition of Wiz could alter the parameters. The bid Tuesday easily eclipses the current largest acquisition in Google's 26-year history — a $12.5 billion takeover of Motorola Mobility in 2012 that didn't pay off the way that the Mountain View, California, company had hoped. The $32 billion purchase of Wiz would also go down as the biggest-ever cybersecurity acquisition and rank among the 20 most expensive takeovers of a software company in history, according to Mergermarket, a financial intelligence service. As often happens with high-priced acquisitions, investors reacted coolly to Tuesday's news. Alphabet's shares declined 2% to close at $160.67. Some of Google's other acquisitions have turned into gold mines, most notably its $1.76 billion purchase of online video pioneer YouTube in 2006 and its $3.1 billion takeover of advertising technology platform DoubleClick in 2008. A $5.4 billion purchase of another security firm, Mandiant, in 2022 also helped fuel the recent growth of Google's Cloud division, which posted an operating profit of $6.1 billion last year. Google's DoubleClick deal is now part of an antitrust case filed by the U.S. Justice Department targeting Google's technology for distributing ads across the internet. A ruling in that case, involving allegations that Google illegally abused its power to manipulate digital ad prices, is expected this year. Regulators in the U.S. and abroad are targeting Google on other fronts, too. Last year, a federal judge in another case brought by the Justice Department last year concluded Google had turned its ubiquitous search engine into an illegal monopoly. The penalization phase of that trial begins next month. The Justice Department is seeking a rebuke that would include a requirement for Google to sell its Chrome web browser and would ban the company from making agreements with Apple and other companies to make its search engine the default tool for finding online information on the iPhone and other devices. The Wiz deal will also get a close look from antitrust regulators. While many expect the Trump administration to welcome more dealmaking than occurred during the previous years, it has also expressed leeriness about Big Tech getting any bigger. Andrew Ferguson, the Trump administration's Federal Trade Commission Chairman, has been particularly outspoken about his resolve to keep Big Tech on a short leash. The deal raises antitrust concerns due to the potential impact on standalone cyber security vendors, as well as potential disruption for bigger rivals. Still, Wedbush's analysts note the industry is 'ripe for consolidation' — which could pose "massive growth opportunities on the horizon heading into this AI Revolution.' Antitrust worries were also believed among the reasons Wiz called off sales talks with Google last year while President Joe Biden's administration was seeking to block a variety of tech deals. Agreeing to a sale now indicates both Google and Wiz are more confident the deal will gain U.S. approval under the Trump administration, Mergermarket analysts Kevin Ketcham and Kevin McCaffrey wrote in a Tuesday note. 'The two sides likely wouldn't have struck the deal if they didn't at least see a potential path to closing,' Ketcham and McCaffrey wrote. But the business watchdog group Demand Progress Education Fund urged the Trump administration to block Google's takeover attempt. 'It's time to show the public whether they have the guts to step in and stop a big fish from being gobbled up by one of the biggest fishes in the pond,' said Emily Peterson-Cassin, the group's director of corporate power. If they get the regulatory greenlight and meet several conditions spelled out in their agreement, Google and Wiz expect the deal to close in 2026. _______ Grantham-Philips reported from New York. Sign in to access your portfolio
Al-Ahram Weekly
18-03-2025
- Business
- Al-Ahram Weekly
Google to buy cybersecurity firm Wiz for $32 billion in the biggest deal in company's history - Tech
Google has struck a deal to buy cybersecurity firm Wiz for $32 billion in what would be the tech giant's biggest-ever acquisition at the same time it's facing a potential breakup of its internet empire. The proposed takeover announced Tuesday is part of Google's aggressive expansion into cloud computing during an artificial intelligence boom. The frenzy is driving demand for data centers that provide the computing power for AI technology and intensifying the competition in that space among Google and two other tech powerhouses, Microsoft and Amazon. If the all-cash transaction is approved by regulators, Wiz will join Google Cloud, an increasingly important part of its business separate from the search and advertising operations that account for most of the $350 billion annual revenue at Google's parent company, Alphabet. With the advent of AI, however, the cloud division has become a rising star at Google. Annual revenue in the division was $26.3 billion in 2022, and soared 64% to $43.2 billion last year. Wiz, a five-year-old startup founded by four longtime friends who met in the Israeli army when they were still teenagers, is on track for an estimated $1 billion in revenue this year. After getting its start in Israel in 2020, Wiz now oversees an operation that makes security tools protecting the information stored in data centers from its current headquarters in New York. 'Wiz and Google Cloud are both fueled by the belief that cloud security needs to be easier, more accessible, more intelligent, and democratized, so more organizations can adopt and use cloud and AI securely,' Wiz CEO Assaf Rappaport wrote in a blog post. In a Tuesday conference call, Google CEO Sundar Pichai predicted Cloud division's addition of Wiz will result in even better security at a lower cost than can be provided now. That prediction may have been aimed as much at regulators likely to scrutinize how the deal will affect competition and pricing, as much as at prospective customers. Google had been courting Wiz for some time before finally settling on a price that's much richer than a reported $23 billion bid that was rejected last July. At that time, Wiz signaled it would instead pivot back to a previously-planned initial public offering. But recent volatility in the stock market has chilled the IPO market, and now Rappaport said Wiz expects to 'innovate even faster' by becoming a part of Google. Wedbush analysts called Google's move to buy Wiz 'a shot across the bow' at other tech giants, particularly Microsoft and Amazon, who have already made big bets on cyber security as the fight to dominate cloud computing intensifies. Google had fallen behind its competition in the cloud space, Wedbush said, but the acquisition of Wiz could alter the parameters. The bid Tuesday easily eclipses the current largest acquisition in Google's 26-year history, a $12.5 billion takeover of Motorola Mobility in 2012 that didn't pay off the way that the Mountain View, California, company had hoped. The $32 billion purchase of Wiz would also go down at the biggest-ever cybersecurity acquisition and rank among the 20 most expensive takeovers of a software company in history, according to Mergermarket, a financial intelligence service. As often happens with high-priced acquisitions, investors reacted coolly to Tuesday's news as Alphabet's shares fell 3% during afternoon trading. Some of Google's other acquisitions have turned into gold mines, most notably its $1.76 billion purchase of online video pioneer YouTube in 2006 and its $3.1 billion takeover of advertising technology platform DoubleClick in 2008. A $5.4 billion purchase of another security firm, Mandiant, in 2022 also helped fuel the recent growth of Google's Cloud division, which posted an operating profit of $6.1 billion last year. Google's DoubleClick deal is now part of an antitrust case filed by the U.S. Justice Department targeting Google's technology for distributing ads across the internet. A ruling in that case, involving allegations that Google illegally abused its power to manipulate digital ad prices, is expected this year. Regulators in the US and abroad are targeting Google on other fronts, too. Last year, a federal judge in another case brought by the Justice Department last year concluded Google had turned its ubiquitous search engine into an illegal monopoly. The penalization phase of that trial begins next month. The Justice Department is seeking a rebuke that would include a requirement for Google to sell its Chrome web browser and would ban the company from making agreements with Apple and other companies to make its search engine the default tool for finding online information on the iPhone and other devices. The Wiz deal will also get a close look from antitrust regulators. While many expect the Trump administration to be more friendly to business deals, it has also shown itself to be leery of big tech. The Wiz deal raises antitrust concerns due to the potential impact on standalone cyber security vendors, as well as potential disruption for bigger rivals. Still, Wedbush's analysts note the industry is 'ripe for consolidation', which could pose "massive growth opportunities on the horizon heading into this AI Revolution.' Antitrust worries were also believed among the reasons Wiz called off sales talks with Google last year while President Joe Biden's administration was seeking to block a variety of tech deals. Agreeing to a sale now indicates both Google and Wiz are more confident the deal will gain US approval under the Trump administration, Mergermarket analysts Kevin Ketcham and Kevin McCaffrey wrote in a Tuesday note. 'The two sides likely wouldn't have struck the deal if they didn't at least see a potential path to closing,' Ketcham and McCaffrey wrote. If they get the regulatory greenlight and meet several conditions spelled out in their agreement, Google and Wiz expect the deal to close in 2026. Follow us on: Facebook Instagram Whatsapp Short link:
Daily Tribune
18-03-2025
- Business
- Daily Tribune
Google to Acquire Israeli Cloud Security Firm Wiz for Record $32 Billion
Email : Google has announced its acquisition of Israeli cloud security company Wiz for $32 billion, marking the largest purchase in the tech giant's history. The acquisition underscores Google's commitment to strengthening cybersecurity as artificial intelligence continues to integrate into technology infrastructure. The all-cash transaction will bring Wiz under the umbrella of Google Cloud, enhancing multi-cloud security solutions for enterprises of all sizes. According to a joint press release issued on Tuesday, the deal will enable Google to offer "an end-to-end security platform for customers, of all types and sizes, in the AI era." Founded in 2020 by CEO Assaf Rappaport and a team of cybersecurity experts who previously sold a venture to Microsoft, Wiz has quickly risen to prominence in the cloud security sector. Despite becoming part of Google Cloud, the company will continue to provide its services to other leading cloud platforms, including Amazon Web Services (AWS) and Microsoft Azure. Wiz is headquartered in New York and operates offices in Tel Aviv and three other U.S. cities. The acquisition reflects Google's ongoing efforts to expand its cybersecurity capabilities as businesses increasingly rely on cloud computing and AI-driven technology solutions.
