Google Is Said to Discuss Buying Mandiant; Microsoft Bows Out

Google is in talks to acquire cybersecurity company Mandiant Inc. in what would be its second-biggest deal ever, according to a person familiar with the matter, after rival suitor Microsoft Corp. backed out of discussions.

Microsoft pulled out of talks more than a week ago, said two people with knowledge of the deliberations who asked not to be identified because the situation is private. The discussions with Google, first reported by the Informationwebsite, sent shares of Mandiant up 16% at the close of trading Monday.

Google and Microsoft are both looking to bolster their cybersecurity operations -- an increasingly ...