Tag: Wiz

Highlights Google has acquired Wiz for $32 billion marking its largest acquisition to date. The deal aims to strengthen Google’s cloud security capabilities amid growing AI and cybersecurity demands. Speculation suggests Donald Trump’s influence may have facilitated the deal after it initially fell apart. Google has agreed to pay $28 million to settle a class-action lawsuit alleging that it favoured white and Asian employees. Caption - Google acquired New York-based cloud security startup Wiz. (Photo by Nathana Rebouças on Unsplash) Google has officially signed a $32 billion all-cash deal to acquire Wiz, a New York-based cloud security startup. This is Google’s largest acquisition to date and a significant move to enhance its cloud security capabilities amid the rapid growth of AI and cybersecurity threats. Wiz will be integrated into Google Cloud, and the deal is expected to close in 2026. Highlighting its expertise in security and AI, Google's statement read, "Google Cloud is a leader in cloud infrastructure, with deep AI expertise and a track record of industry-leading security innovation. Bringing all this to Wiz will help make their solutions even better and more scalable, benefiting customers and partners across all major clouds." This acquisition almost happened last year but fell apart. In July 2023, Wiz rejected Google’s $23 billion offer, stating that it wanted to pursue an IPO instead. However, the IPO market remained weak, and major tech companies now expect Donald Trump’s administration to be more favourable toward large acquisitions than President Joe Biden’s stricter policies. A source familiar with the matter told CNBC that antitrust concerns and investor hesitations played a role in Wiz walking away from the deal last year. At the time, Wiz co-founder Assaf Rappaport told employees, "Saying no to such humbling offers is tough." Just a month after Wiz rejected the deal, a federal judge ruled that Google holds a monopoly in the search market, a case that had been filed four years earlier. Alphabet CEO Sundar Pichai was among the tech executives who attended Donald Trump’s presidential inauguration in January, and Google donated $1 million to the event’s fund. This has fueled speculation that tech giants anticipate a more business-friendly environment under Trump, compared to Biden’s stricter approach to regulating mergers and acquisitions. What This Means for Google and Wiz Wiz was founded in 2020 and has quickly become a major player in cloud security. The company achieved $100 million in annual recurring revenue within just 18 months. Its cybersecurity solutions, which include prevention, active detection, and response, are widely used by large enterprises. Caption - Wiz Co-Founder Assaf Rappaport at the Web Summit 2021 at the Altice Arena in Lisbon, Portugal. (Image credit - Harry Murphy /Sportsfile /Getty Images) Rappaport shared his excitement about the acquisition in a blog post, saying, "Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company." The move is expected to help Google compete more aggressively with Microsoft, which has also been expanding its cloud security offerings. Google’s Track Record in Acquisitions Despite its tech dominance, Google has historically been cautious about massive acquisitions. Before Wiz, its biggest deal was the $12.5 billion purchase of Motorola in 2012, which it later sold to Lenovo for $2.9 billion. Google also made a notable cybersecurity acquisition in 2022, purchasing Mandiant for $5.4 billion. Alphabet currently has $96 billion in cash and marketable securities, giving it the financial strength for such a high-value deal. Importantly, Wiz’s security solutions will continue to function across competing cloud platforms like Amazon Web Services (AWS), Microsoft Azure, and Oracle Cloud, ensuring that customers outside of Google’s ecosystem can still benefit from its services. Meanwhile, Alphabet’s stock fell about 2% despite the big announcement, bringing its total decline for the year to 15%. The Wall Street Journal was the first to report that Google and Wiz were in advanced talks. Google Settles Discrimination Lawsuit for $28 Million In a separate legal matter, Google has agreed to pay $28 million to settle a class-action lawsuit alleging that it favoured white and Asian employees over others by paying them more and placing them on higher career tracks. The settlement, which won preliminary approval last week from Judge Charles Adams of the Santa Clara County Superior Court in California, covers at least 6,632 Google employees in California who worked at the company between February 15, 2018, and December 31, 2024. Judge Adams described the settlement as, "A good result for the class." A Google spokesperson, Courtenay Mencini, confirmed the settlement but denied any wrongdoing. Mencini said, "We continue to disagree with the allegations that we treated anyone differently, and remain committed to paying, hiring and leveling all employees fairly." The lawsuit was led by Ana Cantu, a former Google employee who identifies as Mexican and racially Indigenous. She represented Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and Alaska Native employees. The case is officially listed as Cantu v. Google LLC et al, California Superior Court, Santa Clara County, No. 21CV392049. Cantu claimed that despite seven years of excellent performance in Google’s People Operations and Cloud departments, she was stuck at the same job level while white and Asian employees were promoted and paid more. She also alleged that Google placed white and Asian employees in higher job levels, even when they did the same work, and that those who complained were denied raises and promotions. Cantu’s claims were based on California’s Equal Pay Act, and she eventually left Google in September 2021. The case took an unexpected turn when Cantu’s lawyers agreed to exclude Black employees from the proposed class, a move that Google had requested. After legal fees and penalties, net settlement proceeds total $20.4 million. Judge Adams has scheduled a final approval hearing for September 11, 2025. FAQs Q1. What is the significance of Google's acquisition of Wiz? Answer. Google’s $32 billion acquisition of Wiz is its largest to date, aimed at enhancing its cloud security capabilities amid the rapid growth of AI and cybersecurity threats. Q2. Why did the initial deal between Google and Wiz fall apart? Answer. The 2023 deal fell apart due to antitrust concerns and investor hesitations, with Wiz opting to pursue an IPO instead. However, the IPO market remained weak. Q3. Will Wiz’s solutions remain available on other platforms? Answer. Yes, Wiz’s security solutions will continue to function across competing cloud platforms such as AWS, Microsoft Azure, and Oracle Cloud. Also Read: Google Pixel 9a Roundup: Expected Specs, Price, Launch Date & More Also Read: 5 Chilling Cybersecurity Threats You Need to Know in 2024

Tag: Wiz

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