Media reports indicate that Google is currently in talks about a potential acquisition of Wiz, a startup operating in the cybersecurity area.
According to information released last Sunday, July 14, by journalists, the cost of the mentioned deal which is still being discussed and is not guaranteed, could amount to $23 billion. If the outcome of the negotiations is positive, the acquisition of a startup will be the largest for the technology giant in its entire history.
Insiders referred to by journalists say that a final decision on a potential deal may be made shortly. Also, according to them, the negotiation process between the technology giant and the startup is currently at an active stage.
The media notes that the deal is being considered by Google at a time when this company and many other business giants are facing increased scrutiny from antitrust regulators. Journalists also say that the acquisition of Wiz can help the mentioned technology giant compete with Microsoft and Amazon in the area of cloud computing.
Currently, Google is demonstrating its desire to develop its business in the cybersecurity sector. In the context of the relevant intentions, the technology giant pays special attention to cloud computing. It is worth noting that Google has already acquired Mandiant, a company specializing in security solutions in the virtual space. The cost of this deal was $5.4 billion.
It is worth noting that currently, the issue of cybersecurity is becoming more and more relevant. In this case, the increase in relevance is largely due to the active development of artificial intelligence. Fraudsters also have access to advanced technology, which makes their activities more sophisticated and complex in terms of detection capabilities. In the context of this problem, user awareness is of particular importance. For example, a query in an Internet search engine, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device. Digital literacy is also a tool to combat cybercrime.
In May, Wiz was valued at $12 billion. This figure was achieved after the startup raised $1 billion. Co-Founder and CEO of Wiz Assaf Rappaport said during a conversation with media representatives that the company expects that the current year will be a time of consolidation in the cybersecurity sector. In April, the startup acquired Gem Security, a firm that specializes in detecting and responding to cloud technologies.
It is worth noting that recently there has been a tendency to increase the number of cyber attacks. For example, hackers gained unauthorized access to dozens of HubSpot accounts this month. It is worth noting that a single targeted breach for a certain group of clients can provoke large-scale long-term consequences. There is a corresponding risk because many people reuse passwords for different accounts.
AT&T also reported in July that the call and text records of almost all of its customers were stolen in April when a fraudster gained access to the company’s workspace on a third-party cloud platform and exfiltrated files. The firm delayed the public disclosure of information about the incident at the request of the United States Department of Justice.
Also, last month, auto dealership software provider CDK Global suffered from hacker activity. In July, this company has substantially all of its customers back online with management systems.
The increased focus on cybersecurity is set against the backdrop of a broader discussion about data protection in the connected economy space. In this case, a particular focus is on connected workplaces and smart homes. In the mentioned spaces, the increased use of connected devices is generating new vulnerabilities, largely related to the vast amounts of personal data being gathered.
Specialized surveys found that 82% of e-commerce merchants in the United States experienced a cyberattack or breach of sensitive information last year. Also, 47% of them said that these incidents caused loss of revenue and customers.
As we have reported earlier, Gulf Edge & Google to Develop Sovereign Cloud Service in Thailand.
