Google Pays a Premium for Cloud Security: EU Clears $32bn Acquisition of Wiz

The EU has approved Google’s $32 billion acquisition of cloud-security startup Wiz, following U.S. clearance, underscoring Google's push to strengthen Google Cloud’s security capabilities. The transaction sets a high-water mark for valuations in cloud security and will reshape competition among cloud providers and security vendors.

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Key Takeaways

  • 1The EU granted antitrust approval on Feb 10 for Google’s $32 billion all-cash purchase of Wiz, after U.S. regulators had already cleared the deal.
  • 2The acquisition aims to strengthen Google Cloud’s security stack and help Google catch up with AWS and Microsoft in enterprise cloud offerings.
  • 3The $32bn price signals strong strategic value placed on cloud-native security, likely accelerating consolidation and competition in the cybersecurity sector.
  • 4Regulatory approvals lower immediate legal risk but will not remove future scrutiny over platform competition, data governance and vendor lock-in.
  • 5Enterprises may gain tighter integrated security tools, while pure-play vendors face heightened pressure to adapt or seek exits.

Editor's
Desk

Strategic Analysis

Editor's Take: The Wiz deal is both a statement and a strategy. At $32 billion, Google is paying not merely for code or customers, but for the promise of integrated telemetry, talent and market credibility that can shorten the road to enterprise trust. That premium underscores how central security has become to cloud-market competition and to the economics of AI deployment. In the short term the acquisition strengthens Google Cloud’s proposition; over the medium term it raises the stakes for policymakers balancing innovation against concentration. Watch for a wave of follow-on deals and for renewed debate over how much control dominant platforms should have over the security signals that underpin digital trust.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

Google has won European Union antitrust approval to buy cloud-security firm Wiz for $32 billion, completing regulatory clearance after U.S. authorities already signed off on the all-cash deal announced in March 2025. The deal, one of the largest ever for a cybersecurity startup, cements Google’s aggressive push to bulk up its cloud and security offerings as it seeks to narrow the gap with Amazon Web Services and Microsoft Azure.

The acquisition reflects a broader strategic bet that security is central to winning enterprise cloud customers. By folding Wiz’s technology into Google Cloud, Alphabet aims to offer more integrated tooling for detecting and remediating security risks across multi-cloud environments — an increasingly valuable capability as companies adopt large language models and other AI services that place new demands on data governance and attack-surface management.

For Wiz, founded in Israel and widely regarded as a pioneer in cloud-native threat detection, the price tag validates a rapid climb from startup status to industry-making asset. For the market, the valuation signals that large cloud providers are willing to pay a steep premium for security talent, telemetry and customer relationships that can be embedded into differentiated cloud platforms.

Competitors will feel the momentum. AWS and Microsoft already invest heavily in native cloud security, and Google’s move is likely to intensify innovation and consolidation in the sector. Pure-play security vendors may face pressure to partner, specialize or seek exits of their own; enterprises could see both benefits from tighter platform integration and costs from reduced vendor diversity.

Regulatory assent in both the U.S. and the EU reduces near-term legal risk for the transaction, but it does not end scrutiny of how hyperscalers compete in cloud markets. Antitrust authorities have been sharpening their focus on market power in cloud infrastructure and data services, so approval of this deal will likely shape the precedents and negotiating positions in future tech mergers.

Customers and policymakers will watch how Google integrates Wiz without entrenching lock-in or weakening interoperability. The technical promise is clear: better detection and remediation across distributed environments. The political and commercial trade-offs — around data portability, platform neutrality and control over security telemetry — will determine whether the acquisition becomes a market-transforming advantage or a flashpoint for renewed regulatory intervention.

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