Google parent Alphabet is reportedly in advanced negotiations to acquire cloud security firm Wiz for approximately $33 billion, according to sources familiar with the matter. The deal, if completed, would represent Alphabet's largest acquisition to date.

According to the Wall Street Journal, the technology giant has significantly increased its offer from the $23 billion proposal made last year, which collapsed after Wiz directors and investors expressed concerns about potential regulatory hurdles. The new discussions could lead to an agreement soon, barring any last-minute complications.

Founded in 2020 by alumni of Israel's elite cyber intelligence unit, Wiz provides cloud security services to nearly half of America's top 100 largest companies. The startup has experienced rapid growth, reaching $500 million in annualised recurring revenue last year, with aims to double that figure in 2025, according to co-founder Roy Reznik.

The acquisition would bolster Alphabet's position in the cybersecurity market and expand its cloud infrastructure business, which generated more than $43 billion in revenue last year. Google Cloud currently holds approximately 12 per cent of global market share, placing it third behind Microsoft Azure and Amazon Web Services.

Despite the change in administration, the deal is still likely to face regulatory scrutiny. While President Donald Trump's administration is expected to drop some antitrust policies pursued under President Biden, a transaction creating a cybersecurity behemoth would likely draw attention from regulators.

Wiz had previously announced plans to pursue an initial public offering after the earlier talks with Alphabet fell through. The company was last valued at $12 billion in a private funding round in May 2024 and has backing from investors including Andreessen Horowitz, Lightspeed Venture Partners, Thrive Capital, Index Ventures, and Sequoia Capital.

Alphabet's largest acquisition to date was its $12.5 billion purchase of Motorola Mobility, which it has since sold. In 2022, the company acquired cybersecurity firm Mandiant for $5.4 billion to enhance its Google Cloud offerings.

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