Google's parent company Alphabet Inc (NASDAQ:GOOG) is in talks to acquire cyber security start-up Wiz for about $23 billion, in what Wedbush analysts describe as a "smart poker move."
The deal would be the largest in Google's history, representing a major bet on the cloud cyber security space.
Still weeks from completion, the takeover could fall apart as several details remain unresolved. But, if successful, it would follow Google's $5.4 billion acquisition of Mandiant in 2022, further expanding its cyber security footprint.
Wiz, founded by Israeli entrepreneur and former Microsoft executive, Assaf Rappaport, has raised about $2 billion and was last valued at $12 billion.
The company's technology secures cloud-based programmes, serving clients such as Salesforce, Mars, and BMW, and generating approximately $350 million in annual recurring revenue.
Wedbush believes this move would give Google a competitive edge over Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) in cloud deployments.
Despite potential regulatory hurdles, the acquisition could position Google to capitalise on the growing cloud security market, with expectations to build Wiz into a billion-dollar arm.
The tech industry will be watching closely to see if this "smart poker move" pays off, signalling a significant shift in the competitive landscape of cloud and AI sectors.