Despite having rejected Alphabet’s $23 billion acquisition offer last year and stating its intention to pursue an initial public offering (IPO) instead, cybersecurity startup Wiz now appears to be encountering obstacles on its path to going public. As a result, the company has reopened acquisition discussions, with Alphabet still a potential suitor, reportedly considering an increased offer of approximately $30 billion.
According to sources cited by The Wall Street Journal, Alphabet has resumed negotiations with Wiz regarding a potential acquisition, which, if successfully concluded, would mark the largest acquisition in Alphabet’s history.
Alphabet had previously engaged in acquisition talks with Wiz last year, offering $23 billion at the time. However, Wiz and its investors were concerned about potential regulatory scrutiny, fearing extended investigations into antitrust implications and market dominance concerns. As a result, the company declined Alphabet’s proposal, reaffirming its focus on pursuing an IPO instead.
However, with Wiz now facing challenges in its IPO plans, it has reopened acquisition discussions, and Alphabet remains a leading contender, potentially raising its bid to around $30 billion to assess the feasibility of a deal.
If Alphabet successfully pushes this acquisition forward, it would significantly strengthen Google Cloud’s technological capabilities, particularly in cloud security and computing infrastructure. Such a move would not only enhance the security framework of Google’s cloud services but also make the platform more attractive to enterprise customers, driving greater adoption of Google Cloud.
Furthermore, should Alphabet finalize the purchase, it would stand as one of the largest technology acquisitions of the year, potentially sparking a wave of similar deals within the U.S. tech sector.
In recent years, the U.S. government has intensified scrutiny over major tech companies’ acquisitions, citing concerns over monopolistic behavior. This has led to increased regulatory oversight, with authorities launching antitrust investigations and expressing skepticism toward large-scale mergers and acquisitions.
As a result, many technology firms have become more cautious about leveraging acquisitions to fuel business expansion, fearing prolonged regulatory probes that could impact stock prices and operational flexibility. Similarly, companies weighing the possibility of being acquired are increasingly wary of potential intervention from regulatory bodies, which could complicate transactions and introduce market uncertainty.
