Alphabet, the parent company of Google, is reportedly in advanced negotiations to acquire the cybersecurity startup Wiz for approximately $23 billion. This development was reported by the Wall Street Journal on Sunday, citing sources familiar with the matter.
The deal, if finalized, would mark a notable investment in cloud security for Alphabet. The discussions are ongoing, and while a formal agreement could be reached soon, there is always the possibility that talks could fall through, the report added.
Wiz, a U.S.-Israeli startup, has shown rapid growth and significant investor interest since its founding four years ago. In May, the company completed a private funding round that raised $1 billion, valuing the cloud cybersecurity firm at $12 billion. This latest funding round was led by major venture capital firms including Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital. Additional participants included Greylock, Wellington Management, Cyberstarts, Greenoaks, Howard Schultz, Index Ventures, Salesforce Ventures, and Sequoia Capital. The round also featured a secondary component estimated in the tens of millions of dollars.
Wiz’s rapid rise to a valuation of $12 billion and its potential acquisition for nearly double that amount highlights the growing importance and value of cybersecurity in the cloud computing sector. The startup’s innovative approach and robust security solutions have attracted significant attention from major investors and tech giants alike.
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