Alphabet Inc., Google’s parent company, is on the verge of its biggest takeover as it has reached the final stages of several acquisitions. The tech giant is acquiring up-and-coming cybersecurity firm Wiz for about $23 billion. If the deal happens, it will be one of the most significant events in Alphabet since its emergence.
Wiz, Rising in Cybersecurity
Wiz, which began in Israel and has since relocated to New York, is quickly becoming one of the frontrunners in the cloud-based cybersecurity market. Using artificial intelligence, Wiz provides real-time threat identification and mitigation. The company secured about $350 million in revenue in 2023, enabling 40% of Fortune 100 companies.
Regulatory Landscape and Alphabet’s Move
This potential acquisition comes when regulatory actions against the large tech giants are rising. Under Joe Biden’s administration in the United States government, there’s increasing scrutiny of acquisitions by big tech companies to avoid monopolistic power. Nevertheless, Alphabet is not relaunting its efforts to acquire Wiz.
Strategic Implications
Wiz works with leading cloud service providers such as Microsoft and Amazon, which increases its appeal. This company’s list of clients includes giants like Morgan Stanley and DocuSign. Currently, Wiz has a team of 900 people located only in the USA, Europe, Asia, and Israel, and the company intends to recruit 400 more employees in 2024.
Decade After Motorola
This acquisition would be Alphabet’s largest acquisition to date, topping the previous one in which the company bought Motorola Mobility for $12.5 billion in 2012. However, the subsequent sale of Motorola Mobility for a mere $2.91 billion emphasizes the dangers and difficulties within the tech sector. However, Alphabet’s focus appears to be entirely on strengthening its cybersecurity position through the Wiz transaction.
Other Acquisitions made by Alphabet
Google, or its parent company, Alphabet Inc., has been involved in several major acquisitions. Purchased in 2006 for $1.65 billion, YouTube is currently the world’s largest and most popular video-sharing site. Alphabet acquired DoubleClick in 2007 for $3.1 billion, although it established important partnerships with Yahoo web publishers and advertising agencies.
This company was acquired in 2014 for $3.2 billion, while Nest focuses on home automation technology such as thermostats and surveillance cameras. Looker was a company Alphabet bought in 2019 to strengthen Looker’s data analytics solutions. One of Google’s most notable acquisitions was in 2013 when it bought Waze, a navigation application, for $966 million. In 2021, Alphabet took over Fitbit, a wearable fitness technology company, for $2.1 billion. These acquisitions are examples of Alphabet continuously seeking to push forward technological advancements across various sectors, such as Artificial Intelligence and self-driving cars.
Conclusion
Alphabet and Wiz have not disclosed the details of the ongoing discussions, and the tech world anxiously awaits the results. If successful, this kind of acquisition may profoundly alter cybersecurity measures and Alphabet’s business environments.
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