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Google to buy Wiz for $32B

reuters.com

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Re: Google to buy Wiz for $32B

#551

Post by jll29 »

weatherlite wrote: post #476
dinobones wrote: post #433

This makes no sense. Assume 1,000 customers each generating $2m in ARR with contracts. That’s $2 billion. Assume generous 6x ARR valuation, that’s $12 billion. Where is this $20 billion premium coming from? How could the board approve this? How is this fair to shareholders? Heck, as a minor shareholder in GOOG, I don’t find this financially responsible at all. I can’t help but think sometimes these tech acquisitions…

> Assume 1,000 customers each generating $2m in ARR with contracts. That’s $2 billion. Assume generous 6x ARR valuation, that’s $12 billion. That's the thing , were any numbers released or are we all just gonna speculate here ? What is their growth rate, profit margin etc etc ? How do they fit in Google's business, can current Wiz clients be upsold on GCP more easily now? Can other clients be brought more easily to G…

We all know a lot of people frowned when YouTube was acquired.

Now we know that was an excellent deal for Google (now Alphabet), despite being a long bet.

Good to have top security talent and good cloud security tooling if you're in a cloud play.

Re: Google to buy Wiz for $32B

#552

Post by admiralrohan »

czk wrote: post #256

> Wiz has raised a total of $1.9 billion from a combination of venture capital funds and private investors > Wiz agreed to acquire Tel Aviv-based Raftt, a cloud-based developer collaboration platform, for $50 million in December 2023. In April 2024, the company acquired cloud detection and response startup, Gem Security, for around $350 million > Wiz was founded in January 2020 by Assaf Rappaport, Yinon Costica, Roy…

I am hearing for first time, I thought Google is buying Wix the website builder and was thinking why!

Re: Google to buy Wiz for $32B

#553

Post by lrae »

jonjojojon wrote: post #491

Is there lock-in for Wiz customers, besides the quality of the product? I understand the crazy revenue growth, fastest to 100m ARR, but surely this needs to saturate. Maybe half the fortune 500 use Wiz,but can you imagine 100% or even 80%? Who are their competitors?

The biggest competitor is Orca (pretty much the same product) and they even accuse Wiz of patent infringement. Trial starts in December. https://www.calcalistech.com/ctechnews/article/ryjc8dgnr

Being owned by Google probably would help in those regards too now.

Re: Google to buy Wiz for $32B

#555

Post by czk »

majestik wrote: post #318

This deal isn't about security, it's about data. Google already have one of the best security teams in the industry - Project Zero [0]. They don't need Wiz's "enterprise" expertise for security. This deal is about DATA. Wiz, as a cybersecurity vendor, have full remote access to their customers cloud compute storage (EC2 EBS volumes, etc) in the name of "security scanning" - this is actually part of their unique selli…

Using private data to train a public LLM seems like a huge liability that Google's legal team would never approve. I could see them using the data for all sorts of kinds of analytics though. I heard Google deals in those a lot.

Re: Google to buy Wiz for $32B

#556

Post by powvans »

alephnerd wrote: post #508
1oooqooq wrote: post #449

Earlier quoted context omitted.

most people here are also in security and still haven't heard. It's more likely backroom kickbacks (and/or mossad) than invisible unicorn.

> most people here are also in security No they aren't. I've been a cybersecurity SWE, PM, and VC for a decade at this point and I've almost never found any relevant security or enterprise SaaS related content on HN. For a hot second (around 2018-2019) there was solid conversations around eBPF, io_uring, or cloud posture management, but that doesn't happen on here anymore. Same with MLOps and ML Infra as well - almos…

I vaguely remember this hot second you refer to. What is the HN equivalent where those conversations are happening today?

Re: Google to buy Wiz for $32B

#557

Post by marcus0x62 »

aleph_minus_one wrote: post #545
ryanSrich wrote: post #540

Earlier quoted context omitted.

If you're in security and you haven't at least heard of Wiz, I have doubts about what you actually do. I'm not saying you have to be a CSPM expert, but not even hearing about Wiz, when they are the largest CSPM, is somewhat concerning.

> If you're in security and you haven't at least heard of Wiz, I have doubts about what you actually do. IT security a very wide field. For example, a lot of positions in IT security are actually about compliance (i.e. lots of documentation), and ensuring the rollout of all necessary application patches in the whole company.

Compliance and patch/vulnerability management teams are a major constituency for CSPM tools.

Re: Google to buy Wiz for $32B

#558

Post by marcus0x62 »

belter wrote: post #546
detourdog wrote: post #366

Earlier quoted context omitted.

I never heard of them until they were purchased for $32 billion.

It does not make sense. In 2024 Wiz had 10.7% market share. Revenue in the 1,5 to 1,7 Billion but they were not profitable in 2023. Become profitable in 2024 meaning costs are very high. Also looks like Google is desperate for growth in Cloud and they need to do something . They are paying as much money as their whole Google Cloud revenue in 2023. Revenue multiple is like 40x times revenue for Wiz. Exceptionally high…

10% market share in security is huge. It is an extremely fragmented market, across almost all product segments.

Re: Google to buy Wiz for $32B

#559

Post by [deleted] »

coliveira wrote: post #266
czk wrote: post #256

> Wiz has raised a total of $1.9 billion from a combination of venture capital funds and private investors > Wiz agreed to acquire Tel Aviv-based Raftt, a cloud-based developer collaboration platform, for $50 million in December 2023. In April 2024, the company acquired cloud detection and response startup, Gem Security, for around $350 million > Wiz was founded in January 2020 by Assaf Rappaport, Yinon Costica, Roy…

These companies are the closest you can get to a legal mafia, they are effectively charging companies around the world to keep them "safe". In other words, a job that is traditionally considered to be a basic service of the government is now being privatized by people that nobody knows if we can really trust.

[deleted]
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