Google (GOOGL.US) is reportedly in talks to reacquire cloud security company Wiz, potentially for a staggering $33 billion.
1min read Google (GOOGL.US) is reportedly in talks to acquire cloud security company Wiz Inc. for $33bn, signalling a resumption of acquisition discussions that were halted last summer after years of negotiations.
The possible deal, which could be announced as early as Tuesday, would be the biggest acquisition in Google's history and could help it catch up with microsoft (MSFT.US) and amazon (AMZN.US) in the fiercely competitive cloud computing market. The internet search company's cloud business has turned profitable in recent quarters, though its sales growth has slowed, after years of losses.
Terms are not finalised and the negotiations could still fall apart. Representatives for Wiz declined to comment and google did not respond to a request for comment.
The talks represent a turnaround for Wiz, which last July rejected a $23bn offer from Google and instead pursued plans to go public. Wiz and its investors had cited concerns about a lengthy regulatory approval process, as US and European competition regulators scrutinise the economic impact and market power of the technology industry.
Assaf Rappaport, Wiz's chief executive, had described Google's acquisition offer last year as "humbling" and said he preferred to develop Wiz into a standalone cybersecurity giant to compete with CrowdStrike (CRWD.US) and Palo Alto Networks (PANW.US).
While a Trump administration could provide a more lenient regulatory environment, Google's acquisition offer could still face scrutiny from antitrust regulators. The company is already facing multiple antitrust challenges, including a US justice department lawsuit alleging that it abused its dominance in online search. In another case, a federal judge last year ruled that Google maintained an illegal monopoly in search. It also faces another antitrust case over its digital advertising tools.
However, Google's cloud business, which is ranked third behind Microsoft and Amazon, could provide a basis for arguing against regulators' concerns about the concentration of the cloud computing market.
Wiz, founded by Israelis, is headquartered in New York and has investors including Sequoia Capital, Index Ventures, Insight Partners and Cyberstarts. It was valued at $12bn in a funding round last year.
