Cybersecurity start-up Wiz has turned down a $23 billion acquisition offer from Google, choosing instead to pursue an initial public offering (IPO). The acquisition would have been Google’s largest in the history of the internet giant.
The New York Times reports that Wiz, a privately held cybersecurity company, has made a significant decision that could reshape its future trajectory. Last week, it appeared that Google was on the verge of acquiring Wiz for $23 billion, which would have marked Google’s largest acquisition to date. However, the deal has now been called off, with Wiz opting to continue its independent growth and aim for a public listing.
The news was communicated to Wiz employees through an internal memo, which was viewed by the Times. Assaf Rappaport, Wiz’s Chief Executive Officer, stated in the memo, “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.” Rappaport acknowledged the difficulty of declining such substantial offers but expressed confidence in the company’s team and direction.
Wiz has reaffirmed its commitment to its previously stated goal of generating $1 billion in recurring revenue before pursuing an IPO. This decision comes at a time when the company has been experiencing rapid growth, with reported annualized revenue exceeding $350 million earlier this year, a significant increase from $100 million two years prior.
The potential acquisition by Google would have had far-reaching implications for both companies. For Google, it would have bolstered its cloud-computing division and enhanced its competitive position against Microsoft in the cybersecurity sector. Wiz has gained prominence for its cloud application protection services, which are increasingly relied upon by businesses.
However, the proposed deal faced potential regulatory hurdles. Google’s recent history with U.S. regulators has been contentious, with the Justice Department pursuing two separate antitrust cases against the tech giant. One case targets Google’s search engine dominance, while the other seeks to break up its digital advertising technology business.
Read more at the New York Times here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
