After an abrupt end to negotiations last July, Google and Wiz are back at the negotiating table. According to a recent report from The Wall Street Journal, the tech giant is once again in talks to acquire the Israeli cybersecurity company – this time with an offer valued at $30 billion. If finalized, this would mark Google’s largest acquisition ever and the second-largest in Israel’s history, trailing only Intel’s $14.7 billion purchase of Mobileye in 2017.

Assaf Rappaport and his dog. (Credit: Nathaniel Tobias)

The previous round of negotiations reportedly collapsed when Wiz turned down a $23 billion acquisition offer from Google. Assaf Rapaport, Wiz’s CEO, explained at a TechCrunch conference that the company had opted to pursue an IPO instead, believing in its potential to surpass a $100 billion valuation. However, industry insiders suggest that regulatory concerns may have played a significant role in Wiz’s hesitation.

At the time, the regulatory landscape was heavily influenced by the Biden administration and the leadership of Lina Khan at the U.S. Federal Trade Commission (FTC). The FTC had been closely scrutinizing big tech mergers, leading to prolonged approval processes and, in some cases, outright cancellations. The failed acquisition of Israeli automotive chipmaker Autotalks by Qualcomm and the delayed Run:ai acquisition exemplified the regulatory roadblocks companies were facing. Wiz may have feared that tying itself to Google could result in a long, uncertain wait for regulatory approval, potentially harming its brand and business momentum.

Fast forward eight months, and the landscape has shifted. With the new Trump administration in place, Google appears more optimistic about its chances of securing regulatory approval. Trump replaced Lina Khan with Andrew Ferguson, a known hawkish voice on antitrust issues, but one who may take a more business-friendly approach than his predecessor.

Beyond the financial magnitude of the deal, Google’s renewed pursuit of Wiz signals its strategic intent to strengthen its position in the cybersecurity sector. While Google dominates in search and cloud computing, it lags behind competitors like Microsoft in cybersecurity services. Acquiring Wiz could provide Google with a critical edge, enhancing its enterprise security offerings and bolstering its presence in a market projected to grow exponentially in the coming years.

For Wiz, a Google acquisition could provide vast resources to scale its operations globally and accelerate product innovation. However, there remains the question of whether Wiz will ultimately accept the offer or once again pursue an independent path toward an IPO. The decision will likely hinge on an assessment of market conditions, regulatory risk, and long-term growth potential.

Main image credit: Founders of Wiz from left to right: VP Product Yinon Costica, CEO Assaf Rappaport, CTO Ami Luttwak, and VP R&D Roy Reznik. (Avishag Shaar-Yashuv)