Google's parent company, Alphabet, is once again in advanced discussions to acquire the cloud cybersecurity startup Wiz. This follows failed talks last summer when the companies were close to striking a deal at a $23 billion valuation. Now, according to sources familiar with the discussions, the price being considered has increased, with a new valuation of approximately $30 billion.

Thomas Kurian, head of Google Cloud, is spearheading the effort to acquire Wiz, believing that its cloud security products would align well with Google Cloud’s offerings. Wiz’s annual recurring revenue (ARR) of $500 million, which is expected to reach $1 billion in 2025, is another key factor driving the potential deal. This makes Wiz an attractive acquisition target for Google Cloud.

Wiz’s valuation has seen a significant jump since its last funding round. In May of 2024, Wiz closed a $1 billion funding round, securing a valuation of $12 billion. However, by late 2024, the company’s valuation had reportedly risen to $16 billion in an employee tender offer. Despite this growth, the proposed $30 billion price tag for Wiz seems to be quite a premium, considering its previous valuation milestones.

The acquisition talks previously stalled due to differences between the companies on whether Wiz would remain a separate division or be integrated into Google Cloud. Additionally, high regulatory scrutiny under the Biden administration contributed to the breakdown of talks last year.

Wiz, founded in 2020 by former Israeli military officers, has garnered strong backing from notable investors, including Andreessen Horowitz, Cyberstarts, Index Ventures, Greenoaks, Insight Partners, and Sequoia. The company’s cloud security products have attracted attention from businesses seeking to bolster their cybersecurity efforts in an increasingly digital landscape.

While Wiz had stated that it did not plan to go public in 2025, its recent hire of Fazal Merchant, former executive at DreamWorks and Tanium, as its CFO, suggests that the company is preparing for significant strategic moves, possibly including an initial public offering in the near future.

In the current climate, mergers and acquisitions (M&A) activity has been on the rise, with some investors hopeful that the Federal Trade Commission (FTC) under Andrew Ferguson may be less restrictive on large transactions than the previous administration under Lina Khan. This shift in regulatory dynamics could influence the future of the proposed acquisition.

Despite these developments, a spokesperson for Wiz has declined to comment on the ongoing deal discussions.

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This article was created with AI assistance.