Google revives talks to acquire Wiz in possible $30bn deal

Prior discussions failed last year, but potential price tag is now $7 billion higher

Wiz sought to remain independent last year, but reports suggest that not only have talks resumed but that a deal is close.

Google parent Alphabet has revived discussions around a potential acquisition of fast-growing cloud security vendor Wiz, with the deal size possibly now reaching $30 billion, The Wall Street Journal reported yesterday.

Prior discussions fell apart last summer as Wiz sought to remain independent — but the potential price tag is now $7 billion higher, the report said.

According to the WSJ report, the deal, which would be the largest in Google’s history by far, could be closed “soon.”

Despite having only been founded in 2020, Wiz has been valued at $12 billion by its investors and has been eyeing an initial public offering.

Wiz reached $500 million in annual recurring revenue last year and is looking to cross $1 billion this year, executives have said.

In May 2024, Wiz announced raising $1 billion in new funding at the $12 billion valuation, led by major names of Silicon Valley venture capital including Andreessen Horowitz and Lightspeed Venture Partners.

Multiple media reports in July 2024 indicated that Google parent Alphabet was in advanced talks to acquire Wiz for $23 billion. But later that month, Wiz CEO Assaf Rappaport disclosed that the company would remain independent.

In an email to Wiz staff at the time, Rappaport suggested that Google’s offer was an unsolicited bid.

“While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz,” Rappaport, who is also a co-founder of Wiz, told employees in the email at the time.

In January, Wiz President and CFO Fazal Merchant told CRN that the company was eyeing an IPO as soon as the company felt ready.

Merchant, whose prior roles included serving as CFO of DreamWorks Animation SKG and as co-CEO of cybersecurity unicorn Tanium, said at the time that a major focus of his role at Wiz would be “getting the business to be IPO-ready.”

The company is already well on its way in terms of IPO readiness, however, even with the “blinding pace” of growth that it has seen, he said at the time.

This article first appeared on Computing sister title CRN.