Record Breaking $32 billion USD Google Wiz Deal
This Tuesday, Cyber Security firm Wiz and Google finally came to terms after a long protracted saga. This deal has huge implications for the future of cybersecurity. Last year the founders of Wiz turned down a deal worth $23 billion USD. The founders cited concerns of the US government blocking the deal as well as advice from investors that Wiz would be better off as an independent company.
Just one short year later they have changed their minds. It doesn’t hurt that google upped their offer to $US32 billion. This is by far Google’s biggest ever accusation dwarfing their $12.5 billion USD accusation in 2012. It also shattered records as the biggest deal in the history of cyber security, more than three times Intels deal with McAFee’s( $7.7 million USD) The Google Wiz deal has the potential to reshape the landscape of cyber security.
From Startup to Billionaires
The story of Wiz’s founding is an inspiring tale of innovation, expertise, and a determined effort to tackle the challenges of modern cybersecurity. Founded by four Israeli veterans who left Microsoft in 2020 with a shared vision to solve the serious threats facing the security of cloud based technology. Led by 41 year old chief executive officer Assaf Rappaport, Wiz revolutionised methods to find threats, bugs and weaknesses in cloud based services. Quickly outpacing their competitors who struggled to adapt to the rapidly developing computing industry.
Wiz experienced explosive growth in its 18 months achieving $100 million USD annual recurring revenue (ARR) making it the fastest software company to hit that milestone. By 2024 Wiz hit an ARR of $500 million USD which represented 216% growth year over year. Its strategic acquisitions helped to solidify it’s place as the leader in cybersecurity. Its rapid growth attracted $1.9 billion USD in investment.
Deal or No Deal
In 2024 it looked as if the Google Wiz deal would have been signed, sealed and delivered. Rapport saw Google’s culture as a good fit. Google even went on a charm offensive drafting a contract for Rapport’s beloved dog Mika. However, the deal fell apart in dramatic fashion at the eleventh hour. On the day of the deadline Rapport sent an email at 4 am to the anxiously waiting Wiz employees, many of whom remained at the Tel Aviv office. When interviewed on the topic last fall Rapport said “I can’t believe I’m going to say no to a $23 billion acquisition.” But at the time, he didn’t want to give up a “once-in-life opportunity to be the largest cyber company in the world.”
Fast forward to 2025 and Google returned with a vengeance upping their offer to $32 billion USD. A staggering amount that was an offer that was too good to refuse for Rapport and Wiz especially in the current uncertain landscape for IPO launches. Rappaport justified the move by saying joining Google Cloud was like “strapping a rocket” to their growth, enabling them to innovate faster and to protect more organisations than they could alone.
Google’s Power Play
The Google Wiz Deal marks a transformative moment in the cybersecurity and cloud computing industries. This strategic move strengthens Google Cloud’s position in the competitive race against Microsoft Azure and Amazon Web Services. By integrating Wiz’s advanced cloud security technology, Google Cloud can now offer a more robust and comprehensive suite of services, strengthening its position in the race for cloud technology and security dominance.
For Google, it’s not just about catching up to Microsoft’s $20 billion USD annual security revenue, it’s about positioning itself as a leader in safeguarding the future of cloud computing. The rise of AI has resulted in a new set of challenges for cloud security. Whether the relationship between Wiz and Google can achieve these goals, that story is just entering a new chapter.
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