Google is reportedly considering acquiring cloud cybersecurity startup Wiz for $23 billion.
Transcript:
CONWAY GITTENS: Here’s what we’re watching on TheStreet today.
The Dow and the S&P 500 set fresh record closing highs on the backs of earnings optimism and hopes for lower interest rates. Federal Reserve Chairman Jerome Powell said the Fed doesn’t have to wait until inflation falls to 2 percent in order to start cutting. Stocks also got a boost as some investors bet Donald Trump has a better chance of returning to the White House.
Meanwhile, earnings season continues Tuesday with numbers from Bank of America, Morgan Stanley and UnitedHealth.
Turning to the day’s other headlines: Google may be on the verge of making its biggest deal ever. Google is in serious talks to buy Wiz, a cybersecurity firm for $23 billion, according to the Wall Street Journal.
If completed, the acquisition would come at a time when a never-ending series of cyber attacks have put renewed focus on cyber sleuths and cyber security firms. Wiz was founded in 2020 and was valued at around $12 billion in May when it was preparing for an IPO. The company is financially backed by a number of heavy-hitters who believe in Wiz’s cloud security business.
This planned acquisition, however, could hit a snafu when the Federal Trade Commission hears about it. Google already scooped up one cybersecurity firm two years ago when it purchased Mandiant for $5.4 billion.
The FTC frowns on big tech companies getting even bigger, and the Justice Department has filed two antitrust lawsuits against Google. But the risk of taking on regulators may be worth it for this deal since Google lags far behind rivals Amazon and Microsoft when it comes to cybersecurity for the cloud.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I”m Conway Gittens with TheStreet.
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