Alphabet just can’t quit Wiz. After walking away from a $23 billion deal last year, Google is back at the table, now willing to cough up $30 billion for the cybersecurity startup. That’s a 30% markup for a company that already ghosted them once. Meaning, either Wiz is playing hard to get like a pro, or Google Cloud is so desperate for a security win that it’s willing to overpay just to keep up with Microsoft and Amazon.

(Source: Giphy) 

In short, Google Cloud is third-wheeling the AWS-Azure duopoly, and it knows it. The division finally hit profitability in 2023, but just being profitable isn’t enough when Microsoft is printing money on cybersecurity products that Google doesn’t have. Enter Whiz (which I previously covered in an article last July). 

Founded in 2020, the startup blew up by offering AI-powered cloud security tools that help companies flag risks across platforms—including AWS, Azure, and Google Cloud. That last part is important, because if Google buys Wiz, it means Microsoft and Amazon will have to rely on a Google-owned cybersecurity product. Bigly. 

(Source: Yahoo Finance) 

However, last summer, Wiz pulled the plug on a $23 billion buyout, choosing to chase an IPO instead. CEO Assaf Rappaport even sent a memo to employees saying it was the right call: “Saying no to such humbling offers is tough.” Translation: We know we’re worth more, and we don’t feel like dealing with antitrust regulators for two years. 

But now? Well it’s a different story. Google is even willing to add $7 billion to the offer, and suddenly, those regulatory headaches don’t seem so bad. But, but, but… still, if Google thinks this deal will sail through unchallenged, it must be drunk on its own AI fumes. The  \DOJ is already breathing down Google’s neck over antitrust concerns, the FTC lives rent free in Sundar's head, and Microsoft, Amazon, and probably half of Silicon Valley will cry foul if this deal goes through—not because they care about competition, but because they didn't think of it first.

(Source: Wall Street Journal) 

Which again, is presumably why Wiz walked away last time—nobody wants to be stuck in regulatory limbo while their competitors keep growing. But at $30 billion, even the most IPO-hungry startup founders have to ask themselves: Do we really want to roll the dice on public markets when Google is offering a guaranteed payday? 

In the end, Google Cloud is fighting for relevance while Wiz is already crushing it. And Wiz knows they can either IPO or just keep making Google beg. Which is why this deal ain’t nothing about whether Wiz is worth $30 billion—it’s about whether Google is willing to pay whatever it takes to stay in the cloud security game. And right now, Google looks desperate.

(Source: Giphy) 

For now, keep your eyes on this story and keep your eyes on Google—and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time… 

P.S. You know that feeling when an insider sells $2.5 million shares of a chip stock that’s “supposed” to be the next Nvidia? If you don’t, then you need to join Stocks.News premium asap to get the first-hand look at these massive insider transactions before the rest of the retail world catches on. Spoiler: The stock has soared 400% over the last 12 months—so why in the hell is the Chief Technology Officer of this high-flying stock dumping his bags now? 

Stocks.News holds positions in Google, Microsoft, and Amazon as mentioned in the article.