Google-parent company Alphabet (GOOG/GOOGL) is once again in talks to buy privately held cybersecurity company Wiz.
While nothing official has been announced, Alphabet is reportedly in discussions to pay $30 billion U.S. to acquire Wiz in what would be the technology giant’s largest ever deal.
Any merger and acquisition of this size would be subject to regulatory scrutiny and approval, but the new administration of U.S. President Donald Trump is said to be supportive of dealmaking.
This isn’t the first time Alphabet and Wiz have come close to a takeover deal.
The two technology firms were near a $23 billion U.S. deal last year but the talks failed amid concerns about regulatory hurdles under the former Biden administration.
There were also disagreements over whether Wiz would become part of Alphabet’s cloud-computing business or remain its own independent business unit.
The acquisition of Wiz has the potential to strengthen Alphabet’s cloud business, which has been under pressure amid revenue growth deceleration.
Alphabet’s cloud revenue grew 30% in the final quarter of 2024, missing expectations and down from 35% growth in the third quarter of last year.
Wiz, on the other hand, has aggressively grown its cloud business since it launched in 2020, reflected in the now higher valuation of $30 billion U.S.
Alphabet’s most expensive acquisition to date was its $12.50 billion U.S. purchase of Motorola Mobility in 2012.
The stock of Alphabet is down 13% so far this year and currently trading at $164.29 U.S. per share.
