Apple shares are also rising after it announced a new low-cost iPhone modelByDaniel Rathburn Full Bio
Daniel Rathburn is an editor at Investopedia who works on tax, accounting, regulatory, and cryptocurrency content.Learn about our editorial policiesUpdated March 08, 2022
Alphabet Inc. (GOOGL) announced its purchase of the cybersecurity firm Mandiant Inc. (MNDT) this morning in an all-cash transaction worth approximately $5.4 billion. The move will enhance the security and offerings of Google Cloud.
Google said the deal values Mandiant shares at $23 each. That’s a 2% premium to their closing price yesterday when the stock price jumped 16% following reports the deal was in the works.
If approved by regulators, it would be Google’s second-biggest acquisition ever, behind the $12.5 billion purchase of Motorola in 2012. Google indicated it expects the agreement to be finalized later this year.
Shares of Alphabet are up more than 3% on the news.
Google Cites Urgency of Cybersecurity
Google Cloud CEO Thomas Kurian explained online attacks that used to be targeted at major governments are now being directed at companies in every industry. He said adding Mandiant to Google Cloud will deliver even greater safety to Cloud users.
Mandiant CEO Kevin Mandia noted there has never been a more critical time in cybersecurity, calling it “one of the most important missions of our generation.”
Apple Announces New iPhone SE with 5G
In other FAANG news, Apple Inc. (AAPL) announced that it would offer a low-cost iPhone with 5G capabilities.
The new iPhone SE will be priced at $429, making it the cheapest model available. The new iPhone will be equipped with the A15 processing chip, the same chip used in the iPhone 13, which is double the price.
In its first event of 2022, Apple CEO Tim Cook led by announcing "Friday Night Baseball," a partnership between Apple TV and the MLB. Apple TV subscribers will have exclusive access to two games every Friday during the MLB season.
Apple has proven to be a safe haven for investors seeking shelter from what has been a brutal year for equities. Shares are up nearly 2% following the event.