Google owner Alphabet is in advanced discussions to buy fast-growing cybersecurity startup Wiz for roughly $23 billion, a person familiar with the matter confirmed to CNN.<\/p>\n
A takeover of Wiz, which makes cybersecurity software for cloud computing, would represent a major bet by Google on cybersecurity, marking the tech giant\u2019s biggest-ever acquisition.<\/p>\n
Discussions between Google and Wiz began after the startup raised $1 billion from venture capital investors earlier this year, the source said.<\/p>\n
Terms of a potential deal have not been finalized and talks could still collapse, according to the source.<\/p>\n
News of the Google-Wiz talks was first reported by The Wall Street Journal.<\/p>\n
Neither Google nor Wiz returned CNN\u2019s requests for comment.<\/p>\n
The deal would easily surpass Google\u2019s purchase of Motorola for $12.5 billion about a decade ago, the biggest takeover in company history. Google offloaded Motorola just two years later for a massive loss.<\/p>\n
A $23 billion price tag on Wiz is nearly double the $12 billion valuation of the startup from its most recent round of funding.<\/p>\n
In March 2022, Alphabet bought cybersecurity firm Mandiant for $5.4 billion as part of its efforts to help companies better address cyber threats and bolster its cloud computing business.<\/p>\n
Google Cloud is central to the company\u2019s efforts to diversity revenue beyond its core search advertising business. Although its cloud sales have grown, it has struggled to compete with similar services from Microsoft and Amazon.<\/p>\n
Buying Wiz would be a \u201cshot across the bow\u201d at Microsoft and Amazon, showing that Google is making a \u201cmajor bet on the cyber security space to complement its flagship offering in the cloud,\u201d Dan Ives, managing director and senior equity research analyst at Wedbush, wrote in a note to clients on Monday.<\/p>\n