Wiz, a rising star in the cloud security industry, has announced its decision to turn down a staggering $23 billion acquisition offer from Alphabet Inc., Google’s parent company. In favor of pursuing an initial public offering (IPO), the startup believes it can accomplish its long-term objectives without compromising its independence.
The decision to decline the deal was primarily influenced by concerns over antitrust issues and investor sentiment, according to reports. Wiz co-founder Assaf Rappaport addressed the company’s employees in a memo, expressing the difficulty of rejecting such a generous offer while reiterating their dedication to achieving their original goals. These goals include an IPO and the ambitious target of reaching $1 billion in annual recurring revenue.
The aborted acquisition would have significantly increased Wiz’s valuation, nearly doubling it from the $12 billion established in its most recent funding round. Since its founding in 2020, Wiz has experienced rapid growth under Rappaport’s leadership, turning heads in the industry with its comprehensive range of cloud security products. These offerings encompass prevention, active detection, and response, attracting considerable interest from major corporations and potentially bolstering Google’s rivalry with Microsoft Corp, a leading provider of security software.
Alphabet’s cloud division, which has faced fierce competition from Microsoft and Amazon.com, Inc., reached profitability in 2023 after several years of substantial investment. The failed acquisition notwithstanding, Wiz’s decision to go public reflects its confidence in its own trajectory and ability to thrive independently.
Wiz and Google have yet to comment on this development.