Biggest Cybersecurity Acquisition Ever!

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Hope you are doing well.

In this week’s update, we’ll cover the latest industry news for the highest $$$ value acquisition to date for a cybersecurity company.

Featuring:

• ✍️ Google signs the deal to acquire Wiz in 32 Billion $$.

• 📘 Must reads from Strategy of Security & The Software Analyst.

• ‼️ An interesting Podcast on the deal by industry experts.

• ↪️How CISO’s role is evolving in context of selecting security products.

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Ready? let’s dig in.

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— Yousuf.

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Reshaping Cybersecurity’s Future: A $32B Bet to End “Security Theatre”?

Why the biggest deal in cybersecurity history signals a seismic shift for startups, VCs, and cloud security?

Google’s record-breaking acquisition of Wiz isn’t just about dollars - it’s a direct challenge to the status quo of “checklist security” that fails to stop breaches.

With AI-driven threats rising and multi-cloud complexity exploding, this deal could redefine how businesses protect their data.

But why did Wiz reject Google’s $23B offer last year, and what changed? Let’s unpack the stakes.

The Deal at a Glance

• Price: $32B all-cash (Google’s largest acquisition ever, surpassing its $12.5B Motorola buy in 2012).

• Timeline: Expected to close in 2026, pending regulatory approvals.

• Valuation Surge: Wiz’s valuation jumped from $12B in 2024 to $32B despite market corrections.

So how does this deal compare to other cybersecurity sizeable deals? Below chart from strategy of security highlights this well

For those that don’t know:

• Alphabet is the parent company of Google Cloud.

• Wiz is a multi-cloud security solutions provider with a range of cloud security services.

Why Now? The AI and Multi-Cloud Imperative

Wiz’s cloud-native platform scans AWS, Azure, and Google Cloud for vulnerabilities, making it a linchpin for enterprises juggling multi-cloud environments.

As use of AI increases, it introduces new risks, but also opportunities.

With Wiz, google may automate security across clouds in ways previously impossible.

Key drivers behind the deal:

1. AI Security Demands: Generative AI adoption requires airtight cloud infrastructure.

2. Cloud Wars: Google trails AWS and Azure in market share—Wiz’s tech could lure enterprises needing robust cross-cloud security.

3. Wiz’s Meteoric Growth: Projected to hit $1B ARR in 2025, up from $500M in 2024.

Why the 2024 Deal Collapsed—And Why $32B Now?

In 2024, Wiz rejected Google’s $23B bid over antitrust concerns and a preference for an IPO. Fast-forward to 2025:

• IPO Window Closed: Stock market volatility made going public risky.

• Strategic Shift: Wiz’s founders (ex-Microsoft/Adallom) prioritized integration with Google’s AI infrastructure over independence.

• VC Pressure: Investors sought liquidity after Wiz raised $2B across eight rounds.

Regulatory Landmines and Data Implications

The AWS/Azure Elephant in the Room
Wiz’s platform analyses data across AWS and Azure—now owned by Google’s rival.

While Google promises continued multi-cloud support, regulators worry about:

• Data Leverage: Could Google gain unfair insights into competitors’ cloud ecosystems?

• Antitrust Scrutiny: The DOJ and EU are already probing Big Tech’s dominance.

The deal is most likely to face great scrutiny by regulators as they see cloud security as critical infrastructure.

Industry Impact: Winners and Losers

• Start-ups & VCs: This deal is likely going to supercharge other potential M&A activities and startups in similar category to capitalize on market opportunities from competitors. Expect more acquisitions.

• Competitors: Microsoft and AWS now face pressure to match Wiz’s “best-in-class” tools.

• Security Teams: Consolidation could reduce tool sprawl. With Google Security operations, Wiz CSPM and other cloud security solutions and Mandiant detection and response capabilities - creates a detection-response powerhouse”.

But Beware “Security Theatre”:
Tools that just check compliance boxes are bound to fail, where as solutions like Wiz’s that would offer the preventative approach capabilities is the future.

Customer Outcomes: What’s Next for Wiz Users?

• Short-Term: Business as usual—Wiz remains multi-cloud.

• Long-Term: Deeper Google Cloud integrations, likely AI-driven automation.

• Risks: Potential feature reprioritization for non-Google clouds post-acquisition. Other risks is people leaving Wiz and or product re-direction and several more.

Francis on the Software Analyst newsletter, breaks it down very well.

Best Reads

Below are two must reads on the deal:

• Strategy of Security - W is for Wiz: Alphabet’s Audacious Acquisition Starting to make sense of Alphabet, Wiz, and the day that changed the cybersecurity industry forever.

• Software Analyst - Looking Beyond The Google & Wiz Acquisition: The Future Of Cloud Security The consequences of the acquisition between Wiz and Google and how it changes the future of the cloud security landscape.

Podcast

The “Wiz-Ardry of Google” Panel - an interesting podcast featuring few experts in the cybersecurity and cloud security market analysis space.

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References Used:

• https://www.nytimes.com/2025/03/18/technology/google-alphabet-wiz-deal.html

• https://www.canalys.com/insights/google-cloud-buying-wiz-will-redefine-relationships

• https://indianexpress.com/article/technology/tech-news-technology/what-is-wiz-why-is-google-acquiring-for-32-billion-9895135/

• https://www.channelfutures.com/mergers-acquisitions/google-wiz-acquisition-regulatory-challenges

• https://www.businessinsider.com/google-wiz-acquisition-trump-ipo-big-tech-startups-2025-3

• https://www.msspalert.com/brief/googles-32-billion-wiz-buy-bolsters-its-cloud-security-capabilities-experts-say

• https://www.scworld.com/analysis/googles-32b-wiz-deal-ends-the-era-of-security-theater.

Conclusion

Nothing is set in stone, the deal need to pass regulators and finalize. So keep an eye on how things progresses on the deal.

For Cybersecurity Pros:

• Upskill in cloud-native security and AI-driven platforms.

For Founders & VCs:

• Position startups for acquisition by solving niche cloud/AI security gaps.

• Monitor regulatory landscapes—antitrust hurdles are the new norm.

For Enterprises / CISOs:

• Existing customers to continue to watch the developments.

• For evaluators, need to use caution on the product direction may change.

• Demand transparency on how Google will handle cross-cloud data.

• Pilot Wiz now to gauge its impact pre- and post-acquisition.

The cybersecurity chessboard just got rearranged. Where will you move next? 

What are your thoughts on this deal? drop in comments.

My Recent Most Viewed Social Posts

In case you’ve missed - here are some of my recent most viewed social posts.

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• ISA/IEC 62443 Standards - Part 5 - Security Program Elements (SPEs) for 62443-2-1:2024, Upcoming Asset Owner ACS Security Assurance (ACSSA) Certification Scheme to ISA/IEC 62443-2-1, 2-4, 3-2, 3-3 by ISCI, CISO's role, other interesting reads.

• The Digital Factory (Data Flow) - Part 2 Industry 4.0 data/event driven data flows and security considerations and how's CISO's role is evolved in OT security.

• Cybersecurity & Data Privacy for Hong Kong - HK Cybersecurity Market, upcoming Critical Infrastructure Bill 2024 regulations, Data Privacy Program Core elements, HK markets and more.

• ISA/IEC 62443 Standards - Part 3 - series covering essentials of the standard.

• Tip to remember ISA/IEC 62443 Standards Group & Overview Part 2.

  Continue to be the most viewed post with more than 4.3K views at the time of writing this.

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• What the heck is ITDR - A crash course on Identity Threat Detection & Response.

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