Wiz rejects Google’s $23 billion takeover in favor of IPO

Cybersecurity startup Wiz has turned down a $23 cardinal takeover bid from Google’s parent, Alphabet, breaking disconnected what would person been nan largest acquisition successful nan hunt giant’s history. In an soul memo seen by CNBC, Wiz co-founder Assaf Rappaport said nan institution would alternatively prosecute an first nationalist offering. 

“Saying nary to specified humbling offers is tough,” Rappaport said successful nan memo sent to Wiz employees. Had nan acquisition gone ahead, it would person doubled the $12 cardinal valuation that Wiz announced successful May aft nan institution raised $1 cardinal successful backstage funding. According to nan memo, Wiz will now attraction connected achieving $1 cardinal successful yearly recurring gross alongside nan IPO — goals nan information patient had group earlier its talks pinch Google. Neither Wiz nor Alphabet person officially acknowledged that a woody was being discussed.

Wiz offers cloud-based information solutions for endeavor customers, an charismatic target that could person placed Google successful a amended position to compete pinch manufacture leaders Microsoft and Amazon. Antitrust regulators person progressively fixated connected deals made by Big Tech successful caller years, however, and according to CNBC, some antitrust and investor concerns were cited arsenic reasons for Wiz abandoning nan deal.

The Justice Department has already launched 2 ongoing antitrust lawsuits against Google complete its search engine and digital advertising businesses. Google purchased 2 cybersecurity firms successful 2022 — Siemplify and Mandiant — for $500 cardinal and $5.4 billion, respectively, pinch nan second institution champion recognized for uncovering nan SolarWinds hack.