Google to get wizards to start a cloud for $ 32 billion
Wiz Wiz Website on a smartphone decorated in New York, US, on Tuesday, July 16, 2024.
Gabby Jones | Bloomberg | Getty Images
Google On Tuesday he signed a “Definite deal” For the acquisition of WIZ, a New York cloud startup startup, for $ 32 billion in the agreement on everything.
The deal, the greatest Google ever, will enhance the company’s security technology in the world to improve the threats of artificial intelligence and cyber -security. Wiz will become part of the company in the cloud, and Google said he expected the job to close in 2026.
“Google Cloud is in cloudy infrastructure, with a deep AI expert and record of safety innovations of the leading in the industry,” ” Google said in edition. “Bringing all this WIZ will help make their solutions even better and more scalable, they will use customers and partners in all main clouds.”
Last year Wiz walked Away of a potential acquisition of $ 23 billion by Google and told employees that it would follow iPo instead. However, the IPO market has yet to be opened in a significant way, as the contracts have slowed down in the panel starting at 2022, and technological companies have expressed optimism that Trump’s administration will open the door of major acquisitions after a difficult four years under President Joe Biden.
The source familiar with this question said to CNBC that Wiz had partly moved away from the agreement, partly because of the concern of Antitrustovsky and the investor.
“To say not to such humble offers is difficult,” co -founder Wizf Rapport wrote to employees in the Memorandum at a time of CNBC.
A month later, the federal judge ruling that Google holds a monopoly on the search market, four years after the government filed its Random casewhich claimed that Google created rigid obstacles to entering and loop for feedback that maintained its dominance.
Executive director of the alphabet Sundar Pichai was among the group of high technological executors who attended President Donald Trump Inauguration in January and the company Donated $ 1 A million fund for inauguration.
Assaf Rappart, Wiz, on the central stage during the first day of the web -state of 2021 at the Arena Arena in Lisbon, Portugal.
Harry Murphy | Sportsfile | Getty Images
Before the latest conversations with Google were reported, Wiz placed a view of IPO and $ 1 billion annual repetitive revenue. In July, the memoranda, Rapport wrote that the company would follow those turning point.
Wiz was founded in 2020 and quickly grew under Rappaporte and the company hit $ 100 million annual repetitive revenue After only 18 months. Cloud company products include prevention, active detection and response, portfolio attracted to large companies and help Google Microsoftwhich also sells security software.
“Becoming a part of Google Cloud -and it is effective to tie a rocket on our backs: it will accelerate our innovation rate faster than what we could achieve as an independent company,” said Rapport UA Post on blog Tuesday.
While Google has a long history in M&A, he moved away from Megadeal. Prior to WIZ, his biggest purchase was $ 12.5 billion to procure the Motorola Hardware Marker in 2012. Two years later, the company sold Lenovo property for $ 2.9 billion. Google has also executed cyber -security acquisitions in the past, paying $ 5.4 billion for Mandiant in 2022.
Alphabet closed $ 96 billion in cash and market securities for a year.
WIZ -I products will continue to work on competitive platforms, including the Amazon web service, Microsoft Azure and Oracle Cloud, companies said. Wall Street Journal First reported on Monday that companies were in advanced discussions.
The alphabet shares have fallen on Tuesday by 3% and are now 16% of the year.
– Jennifer Elias and Jordan Novet CNBC contributed to this report.