Cybersecurity startup Wiz turned down a $23 billion acquisition offer from Google, opting instead to pursue an initial public offering (IPO) in what would have been the internet giant’s largest acquisition ever.
of The New York Times Reports Wiz, a privately held cybersecurity company, has made a major decision that could change its trajectory. Last week, it was reported that Google was on the verge of acquiring Wiz for $23 billion, which would have been Google’s largest acquisition to date. However, the deal was called off, with Wiz opting to continue growing independently and pursue an IPO.
The news was conveyed to Wiz employees via an internal memo, Times“We are honored by the offer we received, but choose to continue on our path to building Wizz,” Wizz CEO Assaf Rapaport said in the memo. Rapaport acknowledged the difficulty of turning down such a large offer, but expressed confidence in the company’s team and direction.
Wiz reaffirmed its commitment to its previously stated goal of generating $1 billion in recurring revenue before pursuing an IPO. The decision comes at a time of rapid growth for the company, which reported annual revenue of more than $350 million earlier this year, up from $100 million two years ago.
A potential Google acquisition would have far-reaching implications for both companies: For Google, it would strengthen its cloud computing division and better compete with Microsoft in cybersecurity, with Wiz gaining recognition and increasing trust from enterprises for its cloud application protection services.
But the proposed deal could face regulatory hurdles: Google’s recent relationship with U.S. regulators has been contentious, with the Department of Justice filing two separate antitrust lawsuits against the tech giant, one targeting Google’s dominance of its search engine and another seeking to break up the company’s digital ad tech business.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
