Google’s parent company has announced it’s in late-stage talks to acquire a company called Wiz for $23 billion USD.
👉 Background: Google and its parent company Alphabet is an absolute behemoth - valued at over $2.25 trillion USD. That's because Google pretty much controls our tech lives with Google Search, YouTube, the Android operating system, Gmail, GDrive, Google Maps and much more.
👉 What happened: Alphabet, Google’s parent company has announced it’s in late-stage talks to acquire a company called Wiz, an Israeli cybersecurity company for $23 billion USD. And although it's only been around for 4 years, Wiz is already expecting an annual recurring revenue $350 million in ARR in 2024.
👉 What else: The acquisition of Wiz would help solidify Google’s cloud business and take some pressure off its advertising business where it made more than 77% of its revenue.
💡Cutting-edge technologies often come at the steepest of costs.
💡Currently, Google Cloud plays third fiddle in the cloud computing space behind Amazon (31% of market share) and Microsoft (25% of market share). So Google’s acquisition of Wiz would become a strong selling point in its strategy to become a cloud leader.
💡Since the global cloud infrastructure market is currently generating more than $300 billion in revenue per annum and growing at 21% per year, it’s a space that Google wants to own.
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