Google's parent company Alphabet is pursuing the acquisition of cybersecurity startup Wiz.
The Wall Street Journal (WSJ) reported on the 14th (local time), citing sources, that Alphabet is negotiating to acquire Wiz for about $23 billion (approximately 31.67 trillion KRW). If the deal is finalized, it would be the largest acquisition in Alphabet's history. The largest acquisition to date was the purchase of Motorola Mobility in 2012 for $12.5 billion.
Wiz is a startup that provides cybersecurity software for cloud computing. Earlier this year, it was valued at $12 billion and raised $1 billion in funding. WSJ noted that Wiz is one of the few startups that have successfully raised funds at a higher valuation outside of the artificial intelligence (AI) industry this year.
Accordingly, if Alphabet acquires Wiz, it is expected to secure a favorable position to catch up with competitors such as Microsoft (MS) and Amazon in the increasingly competitive cloud computing market. Last year, Google Cloud's business revenue grew by 26%. The company has also been expanding investments in cloud services and cybersecurity. Two years ago, it acquired the security company Mandiant for about $5.4 billion.
Notably, this negotiation is drawing attention as it is being pursued amid intensified antitrust investigations into big tech companies, including Alphabet. Currently, Google is awaiting a ruling in an antitrust lawsuit filed by the U.S. Department of Justice for allegedly abusing its dominant position in the online search market. Last year, the Department of Justice also filed a second antitrust lawsuit citing unfair practices in the advertising technology business. That case has not yet gone to trial.
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