On Tuesday, March 18, 2025, Alphabet, Google’s parent, dropped a bombshell: it’s acquiring Israeli cybersecurity startup Wiz for $32 billion—the largest deal in its history. After a $23 billion offer collapsed in July 2024 over antitrust fears, Wiz CEO Assaf Rappaport had doubled down on IPO plans. Now, this all-cash pivot signals a seismic shift—not just for Google’s cloud ambitions but for a sluggish IPO and M&A landscape aching for momentum. With AI amplifying cyber threats and companies like SailPoint and CoreWeave testing public waters, is this the spark to reignite dealmaking in 2025? Let’s unpack the move and its ripple effects.
The Deal: Why $32B, Why Now?
Wiz, founded in 2020 by Unit 8200 alumni, rocketed to $700 million in annual recurring revenue (ARR) by Q4 2024, eyeing $1 billion in 2025. Its cloud security platform—scanning AWS, Azure, and Google Cloud for risks—won over 40% of Fortune 100 firms. Google, lagging at 12% cloud market share (vs. AWS’s 30% and Azure’s 21%, per Financial Times), sees Wiz as a lifeline to catch Microsoft and Amazon. “Having a more complete offering for securing workloads in the cloud—that’s the core rationale,” Forrester’s Merritt Maxim told CNBC.
The $32 billion tag—up from $12 billion in May 2024’s funding round—includes a $3.2 billion breakup fee, hinting at regulatory confidence under Trump’s administration, sworn in January 2025. Posts on X, like @speaksvol’s “This is a turning point for Google,” echo optimism about its cloud security play mirroring Microsoft’s Satya Nadella-era wins.
AI and Cyber: The Perfect Storm
Since ChatGPT’s 2022 debut, AI-driven hacks—think phishing scams crafted by GPT-4—have surged, per Clifford Chance’s Neil Barlow. “Hacks could crash a business,” he said, underscoring cybersecurity’s resilience amid economic flux. Google’s $5.4 billion Mandiant buy in 2022 laid the groundwork, but Wiz’s proactive threat prevention (vs. Mandiant’s reactive fixes) and multi-cloud reach give it an edge. “The Google-Wiz tie-up makes them stronger than AWS in some areas,” Maxim noted, suggesting Amazon might counter with buys like Aqua Security or Sysdig.
CB Insights flagged cybersecurity as a 2025 M&A hotspot, and Google’s move—doubling Wiz’s $16 billion secondary sale valuation—validates that. X’s @OpenOutcrier cited CNBC: “Google’s $32 billion Wiz deal may signal a turning point for slow IPO, M&A markets.”
IPO and M&A: Floodgates Opening?
Deal activity tanked from 2021’s 2,066 VC-backed M&A exits ($83.6 billion, PitchBook) to 382 deals ($13.6 billion) in Q1 2025. IPOs, too, stalled—2024’s Instacart and Klaviyo underperformed (Morningstar Growth Index). Yet, green shoots emerged: SailPoint’s February 2025 IPO, CoreWeave’s $2.7 billion filing (March 20), and StubHub’s Friday filing. Wiz’s exit could tip the scales.
“Acquisitions avoid public market volatility,” Graph Theory Capital’s Mariam Pettit told Business Insider, spotlighting faster returns vs. IPOs’ regulatory grind. Wiz’s $32 billion haul—39% above its 2024 bid—may nudge cybersecurity startups toward M&A over listings. Still, experts see IPOs rebounding H2 2025. Proofpoint (post-$12.3 billion Thoma Bravo buyout) eyes 12–18 months, Illumio (CNBC Disruptor alum) and Netskope ($300 million ARR) are “ripe,” per Maxim and EquityZen’s Brianne Lynch. Snyk’s $7.4 billion valuation and $300 million ARR tease a 2026 debut.
Risks and Rewards
Wiz’s buyout might chill near-term cybersecurity IPOs—why go public when Google pays 45–60x ARR (vs. CrowdStrike’s 22x, per Anek Capital’s Orel Levy)? But Lynch asks: “Is this the rip-the-bandage-off moment?” Volatility—tied to Trump’s tariff threats (57.9 sentiment, U. Michigan)—could delay listings. Regulators, despite a friendlier FTC under Andrew Ferguson, may still probe Google’s cloud clout, fresh off its 2024 search monopoly loss.
For Google, integrating Wiz’s 1,700 staff (with $588,000 retention bonuses per TechCrunch) into Google Cloud, led by Thomas Kurian, is key. Rivals won’t sit idle—Microsoft’s Secure Future Initiative (post-2024 CSRB critique) and AWS’s scale loom large.
2025 Outlook: A Cybersecurity Gold Rush?
Google’s $32 billion splash—eclipsing Motorola’s $12.5 billion flop—could unlock a dealmaking wave. If Wiz hits $1 billion ARR under Google, Wedbush’s Dan Ives sees a “$1 trillion market opportunity.” X’s @MorningBrew once called Wiz’s 2024 rejection of $23 billion “hardcore”—now, its sale might prove harder to top. Watch Q3 for Proofpoint or Netskope moves and Amazon’s response. For now, Alphabet is laser-focused on cloud security, and the market’s watching.
