Alphabet's Potential Game-Changing Acquisition of Wiz: A Sign of Big Tech M&A Momentum in 2025, says Analyst

Money | July 16, 2024, 5:44 a.m.

Alphabet Inc, parent company of Google, is reportedly on the verge of acquiring cloud security startup Wiz Inc for a record-breaking $23 billion. Analysts are calling this potential deal a strategic "poker move" that could shake up the Big Tech M&A landscape. Wedbush Securities analyst Daniel Ives sees this acquisition as a game-changer for Alphabet, predicting a surge in M&A activity for Big Tech if the deal goes through. Rosenblatt analyst Catharine Trebnick emphasizes Wiz's AI-powered solutions and financial strength, highlighting the significant growth potential in the cloud security market. Cantor Fitzgerald analyst Yi Fu Lee notes the valuation benchmark set by Alphabet's bid, while KeyBanc Capital Markets analyst Justin Patterson sees the deal strengthening Google Cloud's cybersecurity capabilities. Oppenheimer analyst Ittai Kidron believes the acquisition would position Alphabet as a leader in cloud security and have ripple effects on competitors like Microsoft and AWS. This potential acquisition marks a critical moment in the tech industry's evolution, with analysts forecasting a more active M&A landscape for Big Tech in the future.