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Google And Wiz: Will The Biggest Deal In Tech History Finally Happen?

Google is back at the negotiation table with Wiz, reigniting talks to acquire the cloud security startup at a staggering $30 billion—$7 billion more than the deal that collapsed last summer. If successful, this would mark the largest acquisition in Google’s history, eclipsing its $12.5 billion purchase of Motorola Mobility in 2012.

A Strategic Move For Google Cloud

The driving force behind this renewed push is Google Cloud chief Thomas Kurian, who sees Wiz’s cybersecurity solutions as a perfect complement to Google’s cloud services. With annual revenue of $500 million as of July 2023 and projections to hit $1 billion by 2025, Wiz is an appealing target. For Google, securing this deal means strengthening its position in the cloud market, where it still lags behind Amazon Web Services (AWS) and Microsoft Azure.

A $30 Billion Bet—Too High?

However, the price tag is raising eyebrows. Wiz’s last funding round in May 2023 valued the company at $12 billion, and recent estimates place it at $16 billion—far below Google’s proposed $30 billion acquisition cost. While Wiz has seen rapid growth under co-founder Asaf Rapaport, the valuation jump could trigger concerns among investors about overpaying.

Regulatory Hurdles Still Loom

The deal’s failure last summer was partially due to concerns about antitrust scrutiny, particularly under the Biden administration’s aggressive regulatory stance on Big Tech mergers. While the regulatory climate remains uncertain, a successful acquisition would send a strong signal about how the new Trump administration approaches antitrust policy in 2025.

IPO Or Acquisition?

Despite these talks, Wiz has publicly stated it has no plans for an IPO in 2025. However, the company recently hired Fazal Merchant—a former DreamWorks and Tanium executive—as CFO, a move that often precedes a public offering. This raises the question: is Wiz leveraging Google’s offer to drive up its market value ahead of a potential IPO?

What’s Next?

If the deal goes through, it will reshape the cloud security landscape and solidify Google’s aggressive expansion in enterprise cybersecurity. But with a hefty price tag and regulatory uncertainties, Alphabet must weigh whether this blockbuster acquisition is worth the risk.

Bank Of England Holds Rates At 3.75% In Split Vote As Inflation Risks Rise

The Bank of England kept its benchmark interest rate at 3.75% on Thursday, but the decision was not unanimous. In a 6-3 vote, the Monetary Policy Committee kept rates unchanged, while three members backed a 25-basis-point increase to 4%. Renewed energy price pressures have added to concerns that inflation could remain elevated.

Inflation Pressures Remain

Policymakers said inflation “is likely to rise further over coming quarters,” citing higher and more volatile crude oil and refined energy prices since the conflict began.

So far, there has been “little evidence” of significant second-round effects, such as broader wage and price increases. Inflation risks, however, are now “tilted to the upside” and have increased since the July Monetary Policy Report.

Energy Prices Add To Inflation Risks

Brent crude has risen 36% since July, reaching $106 a barrel on Sept. 14, while UK wholesale gas prices increased 78% to 207 pence per therm.

Higher energy costs can feed into transport, production and household expenses, raising costs across supply chains. Refinery pressures have also pushed crack spreads, the difference between refined fuel and crude prices, well above pre-conflict levels.

Economy Shows Resilience

Despite the inflation risks, UK economic activity has held up slightly better than the Bank expected. A softer labor market and higher borrowing costs are expected to help reduce inflation over time.

Previous monetary tightening is still working through the economy, according to policymakers. So far, the latest energy shock has not produced clear evidence of a broader wage-price spiral.

Major Central Banks Take Different Paths

The decision comes during a busy period for global monetary policy. The Federal Reserve raised rates Wednesday to 3.75%-4% in its first increase since 2023, while the European Central Bank recently lifted its deposit rate to 2.5%.

The Bank of Japan is due to announce its decision Friday, with markets expecting a rate increase. Thursday’s split vote shows that pressure for tighter policy remains within the Bank of England’s Monetary Policy Committee.

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