Google’s parent company, Alphabet, pivoted to a new acquisition after pulling out of talks with artificial intelligence customer platform HubSpot. The company has now set its sights on cybersecurity startup Wiz, according to a recent report by Reuters.
Reportedly, the deal could be potentially worth around $23 billion, largely as a cash payout, which would mark Alphabet’s largest acquisition ever. The two companies are in advanced talks and could become official soon.
If it manages to get the agreement with Wiz done, Alphabet will likely have to face a number of additional obstacles to the deal over the finishing line. This is mainly due to U.S. regulators showing less willingness to green-light major acquisitions by tech giants.
Wiz was founded in 2020 and soon became one of the biggest players in the cybersecurity market. The company, which is headquartered in New York City, provides businesses with a secure corporate cloud infrastructure and offers AI-powered products with prevention and response capabilities. Wiz works with a number of high-profile companies, including Microsoft, Amazon, Morgan Stanley, and DocuSign.
Alphabet has been recently working on expanding its cloud business, having seen its cloud-based computing division gain 26% in revenue and become profitable for the first time in 2023.