In a landmark move, Google’s parent company Alphabet (NASDAQ: GOOGL) has announced its acquisition of cloud security firm Wiz for a staggering $32 billion, marking the largest purchase in the company’s history.
This deal, set to be finalized in 2026 pending regulatory approval, represents a significant strategic push by Google to enhance its cloud security capabilities in response to growing AI-related threats. The transaction also highlights the evolving landscape of mergers and acquisitions, particularly within the startup sector, and poses a potential regulatory challenge for the Trump administration’s antitrust policies.
Google to Acquire Cloud Security Startup Wiz for $32 Billion
Google’s decision to acquire Wiz underscores its commitment to strengthening its cloud security offerings amid a rapidly changing technological landscape. As AI continues to evolve, so do the associated security threats, necessitating robust measures to protect data and systems.
Wiz’s advanced technology, which is adept at identifying vulnerabilities in cloud environments, will be a critical addition to Google Cloud’s portfolio. This acquisition not only positions Google to better safeguard its cloud services but also signals a broader industry trend towards prioritizing security in multi-cloud settings.
The acquisition is poised to have a ripple effect on the startup sector, potentially invigorating mergers and acquisitions activity that has been sluggish in recent years. With IPOs becoming less favorable for many startups, being acquired by a tech giant like Google offers an attractive alternative.
However, this deal also presents a significant test for the Trump administration’s antitrust policies. Known for its mixed approach to corporate mergers, the administration’s handling of this acquisition will be closely watched as it navigates the balance between fostering innovation and maintaining competitive markets.
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GOOGL Stock Brief
In the wake of the acquisition announcement, Google’s stock (GOOGL) has experienced notable fluctuations. As of March 18, 2025, the stock opened at $163.675 and saw a current price of $159.74, reflecting a decline from its previous close of $164.29. The day’s trading has seen a low of $156.72 and a high of $164.24, with the stock operating within a 52-week range of $146.08 to $207.05.
Despite the short-term volatility, market analysts maintain a positive outlook, with a “Buy” recommendation and a target median price of $220.00, suggesting confidence in the stock’s long-term potential.
Google’s financial metrics paint a picture of a robust company with a market cap of $1.959 trillion and total revenue of $350.018 billion. The company’s trailing P/E ratio stands at 19.892902, while the forward P/E is slightly more favorable at 17.828125, indicating expectations of earnings growth.
With a dividend yield of 0.49% and a strong balance sheet characterized by a quick ratio of 1.661 and a current ratio of 1.837, Google is well-positioned to weather market fluctuations.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.