Google Rogoh IDR 525 Trillion! Acquisition Of Wiz Becomes The Biggest Step In Technology History!
JAKARTA - Alphabet, Google's parent company, announced on Tuesday 18 March that the company from Silicon Valley will acquire Wiz for around 32 billion US dollars (IDR 525.6 trillion). This brings together the biggest deal the technology company has ever made so far.
The move aims to strengthen cybersecurity in cloud computing services, while increasing Google Cloud's competitiveness against Amazon Web Services (AWS) and Microsoft Azure.
This acquisition was carried out in full cash, after Wiz previously rejected an offer worth 23 billion US dollars from Alphabet last year. The reason is that there are concerns regarding antitrust approvals and plans of companies wishing to conduct an IPO (Initial Public Offering).
Acquiring Wiz will help Google improve their cloud business with AI-based cybersecurity solutions (Artificial Intelligence). This technology allows companies to detect and eliminate critical security risks, which are increasingly important as generative AI usage increases such as ChatGPT.
"Clouds are becoming increasingly important, and hackers are not slowing down. They are already using the most innovative technology to move faster," said Wiz CEO Assaf Rappaport, who previously called Google's offer a "big honor".
While the year 2024 poses a challenge to major deals due to strict regulations, optimism at Wall Street is increasing that antitrust policies under US President Donald Trump's administration could accelerate the momentum of major acquisitions like this.
Google has signed a definitive agreement to acquire @Wiz_io – a significant step toward improving cloud security, lowering cost, and spurring the adoption of multicloud in the AI era → https://t.co/PflOF8REv4 pic.twitter.com/NorFo53nTC
— Google Cloud (@googlecloud) March 18, 2025
Google has signed a definitive agreement to acquire @Wiz_io – a significant step toward improving cloud security, lowering cost, and spurring the adoption of multicloud in the AI era → https://t.co/PflOF8REv4 pic.twitter.com/NorFo53nTC
Pembang Pesat Cybersecurity Startup
As one of the fastest growing software startups, Wiz is valued at 12 billion US dollars (Rp197.1 trillion) in a funding round in May 2024. Wiz is working with various cloud providers such as AWS, Microsoft Azure, and Google Cloud, as well as having large customers such as Morgan Stanley, BMW, and LVMH.
Once this acquisition is complete, Wiz will join Google Cloud's business, which generates revenue of more than US$40 billion (Rp657 trillion) by 2024. Its growth has even surpassed Google's search business in recent years. Nevertheless, Wiz will continue to offer its services in various other major cloud providers.
Alphabet expects this deal to be completed by 2026, depending on regulatory approval.
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DA Davidson analyst Gil Luria assessed that this higher price reflects Wiz's exponential growth in the past year. "In order for Google to compete with Microsoft Azure in attracting enterprise subscribers, they need to offer a wider range of services, including security software," Luria said, quoted by VOI from Reuters.
This is not the first time Google has made a major acquisition in the cybersecurity sector. In 2022, they acquired Mandiant for $5.4 billion. That figure beats Microsoft's offering in tough competition.
Interest in the cybersecurity industry has increased since last year's CrowdStrice global blackout incident disrupting various industries, prompting companies to increase spending to protect their systems from cyber threats.
Currently, Google has cash and cash equivalents of US$23.47 billion as of December 31, 2024, meaning they may have to seek additional funding to complete this transaction.
Alphabet previously allocated US$75 billion for capital expenditures by 2025, most of which were aimed at investing in AI. However, they stated that their capital allocation plan remains unchanged despite this acquisition.
Google shares fell nearly 3% in early trading due to overall market weakening. Last year, its shares rose by about 35%, but experienced a 13% drop this year due to investor concerns over large spending on AI, particularly in the face of competition from DeepSek, a Chinese AI company at lower production costs.