Why Google Wanted Wiz So Badly

If at first you don’t succeed, try offering more money. That’s the strategy Google employed to ink its $32 billion deal to acquire cloud cybersecurity startup Wiz, which the two companies announced today. The deal reemerged from the ashes this week after Wiz last summer rejected a $23 billion bid from Google, deciding that it preferred to remain independent and pursue an IPO. 

I’m told that Google never gave up hope of winning Wiz. Google executives including CEO Sundar Pichai and cloud chief Thomas Kurian maintained steady, friendly contact with Wiz executives over the past eight months, according to someone involved in the talks. Several weeks ago, Google made a formal offer to buy Wiz, and the deal came together relatively quickly thereafter, this person said. Google succeeded despite the emergence of other bidders over the past several months, who lobbed their own offers to Wiz, according to a second person with direct knowledge of the situation.