Alphabet stock falls after announcing $32 billion deal to acquire Wiz, investors concerned about acquisition size.

From Nasdaq: 2025-03-18 11:48:07

Alphabet’s stock is down after announcing a $32 billion cash deal to acquire cloud security company Wiz. The deal is Alphabet’s largest to date, with Wiz set to join Google Cloud next year. Investors may be concerned about the size of the acquisition.

Wiz rejected Alphabet’s $23 billion offer last year, opting for an IPO instead. Alphabet increased its offer by $9 billion, emphasizing the importance of cybersecurity in Google Cloud. The acquisition could help Alphabet compete with Amazon and Microsoft in the cloud market, offering enhanced security options for customers.

Investors may question Alphabet’s decision to pay $32 billion in cash for Wiz, nearly 40% more than the previous offer. Wiz had $500 million in annual recurring revenue as of September 2024. The acquisition comes amidst Alphabet’s significant investments in artificial intelligence.

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