Cybersecurity startup Wiz rejected a $23 billion acquisition offer offered by Google and its parent company Alphabet. Thus, the largest acquisition agreement in the history of the internet giant fell through. Assaf Rappaport, one of the founders of Wiz, stated in the statement he sent to company employees that Wiz preferred public offering instead of sales.
Rappaport said in his statement: “It is difficult to say no to such modest offers.” Had the sale gone through, Wiz’s valuation would have doubled from the $12 billion it announced in May after the company raised $1 billion in private financing.
According to the statement sent to employees; Wiz will now focus on achieving $1 billion in annual recurring revenue, on top of the IPO goals it set before its talks with Google. It is worth noting that there has been no official confirmation from either Wiz or Alphabet regarding the sales talks.
Why didn’t Wiz accept the offer offered by Google?
Wiz offers cloud-based security solutions for enterprise customers. This means that the company has a weapon that will empower Google to better compete with industry leaders Microsoft and Amazon in this field. However, in recent years, acquisitions by large technology companies have been scrutinized much more closely by regulators. It is said that Wiz turned down Google’s offer due to both these concerns and investors’ concerns.
The US Department of Justice is currently conducting two investigations into Google for its search engine and digital advertising businesses. In 2022, Google acquired two cybersecurity companies named Siemplify and Mandiant for $ 500 million and $ 5.4 billion, respectively. The addition of a third company here could put the internet giant in a difficult situation.
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