1 month ago
13
Despite the potential benefits, Wiz decided to reject Alphabet’s offer and focus on its independent growth path. This decision was communicated through a memo by Wiz CEO Assaf Rappaport, who highlighted the company’s intent to shift focus towards an IPO read more
 "Cybersecurity firm Wiz rejects $23bn bid from Google’s Alphabet, will go for an IPO instead")
Despite the potential benefits, Wiz decided to reject Alphabet's offer and focus on its independent growth path. Image Credit: Reuters
Israeli cybersecurity startup Wiz has decided to terminate acquisition talks with Alphabet, the parent company of Google, regarding a proposed $23 billion deal. This decision was communicated through a memo by Wiz CEO Assaf Rappaport, who highlighted the company’s intent to shift focus towards an initial public offering (IPO), as originally planned.
Rappaport’s memo expressed confidence in the decision to decline Alphabet’s acquisition offer, emphasizing the strength and capability of Wiz’s exceptional team. Although neither Alphabet nor Wiz have officially confirmed the discussions, sources familiar with the matter have indicated that such talks were indeed taking place.
The proposed acquisition would have been Alphabet’s largest ever, aimed at bolstering its position in the competitive cloud services market, where it competes with giants like Microsoft and Amazon. Wiz provides a service that scans cloud storage providers, such as Amazon Web Services and Microsoft Azure, for security risks.
Despite the potential benefits, Wiz decided to reject Alphabet’s offer and focus on its independent growth path. In an internal email, the company stated, “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.” The email also outlined the company’s ambitious targets of reaching $1 billion in annual recurring revenue and pursuing an IPO.
Rappaport’s memo further elaborated on the decision, stating, “Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice. The market validation we have experienced following this news only reinforces our goal – creating a platform that both security and development teams love.”
Neither Wiz nor Alphabet had released official statements about the termination of the deal talks by Tuesday morning.
However, scepticism had been growing regarding whether the deal would pass regulatory scrutiny, given the increasing regulatory pressure on big tech acquisitions. Recent examples include Adobe abandoning its $20 billion takeover of Figma due to concerns from European and UK regulators, and the U.S. Department of Justice and the Federal Trade Commission’s heightened scrutiny of major players in the AI market, such as Microsoft, OpenAI, and Nvidia.
Founded in 2020, Wiz has quickly grown and was valued at $12 billion during a funding round in May. This round attracted prominent investors, including Andreessen Horowitz, Lightspeed Venture Partners, and Thrive Capital. Wiz boasts a significant customer base, claiming that 40% of Fortune 100 companies use its services, and it is currently generating $350 million in annual recurring revenue.
With this decision, Wiz is set to continue its journey as an independent company, focusing on growth and innovation in the cybersecurity sector. The rejection of Alphabet’s offer underscores the startup’s confidence in its vision and strategy for the future.
){kind=tracking}
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
English (US) ·