Google’s colossal move to zap Microsoft and Amazon: $32bn Wiz cloud-shaking deal set to rock Big Tech

Alphabet, Google’s parent company, has announced its largest-ever acquisition, snapping up Israeli cloud-security high-flyer Wiz for a staggering $32 billion. The move, revealed on Tuesday, March 18, is set to turbocharge Google’s standing in the cloud-computing arena and send ripples through an industry already grappling with mounting cybersecurity threats.

A record-breaking price

Few experts saw Alphabet pulling the trigger on a deal of this size, especially after Wiz reportedly turned down a $23 billion offer from Google last year. The new price tag marks a dramatic leap from the startup’s private valuation of $12 billion in May 2024. Wiz currently boasts more than $500 million in annual recurring revenue, making it an undeniably prized catch.

Competing with the cloud titans

The acquisition will see Wiz folded into Google’s cloud unit, spearheaded by CEO Thomas Kurian, a driving force behind Alphabet’s quest to outshine Microsoft’s Azure and Amazon’s AWS. Many analysts believe the addition of Wiz’s technology will significantly enhance Google’s security portfolio, which is a key battleground in the quest to lure B2B customers.

Despite the excitement, Alphabet’s shares fell by about 4% on the news. The stock had already been under pressure – down 13% this year on concerns over Alphabet’s big-spending AI strategy and mounting competition from budget-friendly Chinese rival DeepSeek.

Wiz keeps its cloud-agnostic magic

While Wiz will become a part of Google Cloud, it will continue supporting rival platforms including Amazon Web Services and Microsoft Azure. This cloud-agnostic stance may help offset antitrust concerns, as lawmakers in the US have sharpened their gaze on major tech transactions.

A White House wildcard

Insiders say talks between Alphabet and Wiz shifted gears after Donald Trump returned to the White House, reigniting speculation about how the administration would handle big-ticket tech deals. During Trump’s first term, heightened scrutiny on Big Tech prompted concerns that certain mergers might be scuppered.

There is speculation that the Federal Trade Commission (FTC), now led by Andrew Ferguson, might soften its M&A stance compared with previous crackdowns. For Alphabet, whose Google arm is already embroiled in antitrust disputes over its advertising technology and Chrome browser, passing regulatory checks could prove a challenge.

A look ahead for Google and Alphabet

Alphabet expects to finalise the Wiz deal in 2026, pending regulatory approvals. With just over $23 billion in cash and cash equivalents at the end of last year, Google may need additional financing to see the deal through. If all goes to plan, the search titan’s big incursion into cybersecurity could be a game-changer for its cloud ambitions.

However, for now, Alphabet and Wiz must sit tight as regulators, the White House, and the markets respond to one of Big Tech’s most eye-popping transactions in history.

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