The Google-Wiz deal has broken down

Last week, we covered that Alphabet, the parent company of Google, was nearing a deal to acquire the cybersecurity startup Wiz for approximately $23 billion. This acquisition, if completed, would have been the largest in Google’s history.

Why is Google not buying Wiz?

However, recent updates reveal that Wiz has declined Google’s substantial $23 billion offer. Despite the offer being nearly double its last assessed private value of $12 billion, Wiz’s management, backed by its investors, decided to retain its independence. In an email to Wiz’s 1,200 employees worldwide, CEO Assaf Rappaport stated that rejecting such a significant and flattering proposal was difficult, but he remains confident in the decision, attributing it to the strength and potential of their exceptional team.

According to TechCrunch, Assaf Rappaport, CEO of Wiz, communicated with the company’s 1,200 employees globally through an email, expressing that while it was challenging to decline such significant offers, his confidence in their exceptional team made the decision feasible.

Wiz, headquartered in New York, was established in 2020 by a quartet of former Israeli military officers. This team wasn’t new to the cybersecurity arena; they had previously founded Adallom, a cloud cybersecurity firm, which Microsoft acquired for $320 million. Their experience and past successes have played a pivotal role in shaping Wiz’s strategic decisions, including their recent choice to remain independent.

 Wiz has declined Google’s substantial $23 billion offer (Image credit)

Here is the full text of the email that Rappaport circulated to the employees:

Wizards,

I know the last week has been intense, with the buzz about a potential acquisition. While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.

Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO.

Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.

The market validation we have experienced following this news only reinforces our goal – creating a platform that both security and development teams love. We are grateful for the faith our employees, investors, and customers have in us as we build the best cybersecurity company in the world.

Thank you for your hard work and focus during these days, which helped us stay on track and finish the quarter stronger than ever. As we always say: LFG.

Assaf

Featured image credit: Ahmed Shabana/Unsplash