Google’s $23 Billion Acquisition Talks with Cybersecurity Startup Wiz Fall Through
The company would instead pursue an initial public offering (IPO) despite the lucrative offer from Google.
Big-money talks between Google and Israeli cybersecurity startup Wiz have fizzled out. The tech giant was reportedly prepared to shell out a staggering $23 billion for the cloud security firm, a move that would have marked its largest acquisition to date.
Techloy
However, in a surprising turn of events, Wiz CEO Assaf Rappaport in an email to employees on Monday announced that the company would instead pursue an initial public offering (IPO) despite the lucrative offer from Google. Rappaport expressed appreciation for Google’s offer but emphasized his confidence in Wiz’s ability to grow independently.
Had the deal gone through, Wiz would have significantly strengthened Google's cloud computing capabilities, an area where it currently lags behind Amazon and Microsoft.
Rappaport mentioned that Wiz aims to reach $1 billion in annual recurring revenue within the next year, along with plans to go public in the following years. Currently, the company’s annual recurring revenue stands at half that amount, according to the Wall Street Journal.
Wiz, founded in 2020, has rapidly gained traction in the cybersecurity industry, boasting a valuation of $12 billion. The company has attracted significant attention for its innovative cloud security solutions and has secured a substantial customer base, including 40% of Fortune 100 companies like Google, Amazon and Microsoft.
Google's interest in Wiz underscores the growing importance of cybersecurity in the tech industry. The company has been investing heavily in its cloud business and acquiring Wiz would have significantly bolstered its security offerings. While this deal has fallen through, it is likely that Google will continue to explore strategic acquisitions to enhance its cloud platform.
Emmanuel Oyedeji
