Wiz has turned down a $23 billion acquisition proposal from Google parent Alphabet, opting instead to proceed with its planned initial public offering, according to a company memo obtained by media.
This decision halts what could have been the largest acquisition in Google’s 25-year history. In a Monday memo to Wiz employees, CEO Assaf Rappaport acknowledged that rejecting such a significant offer was challenging but emphasized the company’s commitment to its future goals, which include going public and achieving $1 billion in annual recurring revenue.
Both Wiz and Google did not immediately respond to media requests for comments on Tuesday.
Speculation about Wiz potentially being acquired by Alphabet had intensified over the past week, fueled by reports from multiple sources familiar with the advanced talks. However, neither company officially confirmed the discussions. Rappaport’s note to employees did not specifically mention Google or Alphabet, instead referring to “buzz about a potential acquisition.”
Acquisition negotiations between companies are often unpredictable and, in the context of Big Tech, can raise antitrust concerns.
The proposed acquisition of Wiz was intended to bolster Alphabet’s standing in the cloud computing market, currently dominated by Amazon and Microsoft.
This market positioning might have provided Alphabet some leverage to mitigate potential regulatory concerns. Nonetheless, Google is well-acquainted with antitrust issues, as the U.S. Justice Department has targeted its core businesses—internet search and digital advertising—in two separate lawsuits.
Wedbush analysts predicted that the termination of this deal would have significant repercussions in the industry, likely accelerating Google’s cybersecurity initiatives. They also anticipated further consolidation in the sector as tech giants seek vendors to enhance their platforms.
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Founded four years ago and based in New York, Wiz develops security tools to protect data stored in remote data centers from cyber threats. In May, Wiz announced it had raised $1 billion from venture capital investors, bringing the company’s valuation to $12 billion.