- Cybersecurity startup Wiz has decided to reject a staggering $23 billion acquisition offer from Alphabet, Google’s parent company.
- The refusal of such a significant acquisition offer highlights Wiz’s confidence in its future prospects and its desire to continue shaping the cybersecurity landscape on its own terms.
OUR TAKE
Wiz turning down $23 billion from Google’s momma? That’s like saying no to a golden ticket to the candy store. But hey, Assaf Rappaport and his crew are no strangers to success. Remember Adallom? They cashed out big with Microsoft. Now, with Wiz, they’re betting on themselves again. It’s a risky move, but hey, sometimes you gotta trust your gut and go for the long game. Let’s see if Wiz can keep the momentum going and prove they’re worth even more than that eye-popping offer.
–Miurio huang, BTW reporter
What happened
Cybersecurity startup Wiz has decided to reject a staggering $23 billion acquisition offer from Alphabet, Google’s parent company. This development comes despite the offer being significantly higher than Wiz’s most recent private valuation of $12 billion. According to a source familiar with the negotiations, Wiz’s management team, supported by its investors, has opted to remain independent.
Assaf Rappaport, CEO of Wiz, communicated the company’s decision to its global workforce of 1,200 employees via an email. In his message, Rappaport acknowledged the difficulty of turning down such a substantial offer but expressed confidence in the company’s decision to continue its current trajectory.
Founded in 2020, Wiz was established by four former Israeli military officers—Assaf Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak. The founders previously co-founded Adallom, a cloud cybersecurity company acquired by Microsoft for $320 million. Each of the founders holds a 9% stake in Wiz. The company is backed by prominent venture capital firms, including Index Ventures, Sequoia Capital, and Thrive Capital.
Also read: Google’s acquisition target Wiz is Israel’s military tech seed
Also read: Alphabet plans to acquire cybersecurity startup Wiz for $23B
Why it’s important
Wiz’s decision to decline Google’s offer is notable for several reasons. Firstly, it underscores the company’s commitment to its long-term vision and growth objectives. The refusal of such a significant acquisition offer highlights Wiz’s confidence in its future prospects and its desire to continue shaping the cybersecurity landscape on its own terms.
Assaf Rappaport’s email to employees sheds light on Wiz’s strategic goals, including achieving $1 billion in annual recurring revenue (ARR) and preparing for an initial public offering (IPO). These milestones reflect the company’s ambition and determination to build a leading cybersecurity platform that caters to both security and development teams.
The decision also has broader implications for the tech industry. By choosing to remain independent, Wiz signals a growing trend among tech startups to resist acquisition offers in favor of pursuing long-term growth and innovation. This trend could influence other companies in the tech sector to reconsider similar offers and focus on their strategic goals.
Wiz’s ability to attract such a substantial acquisition offer while maintaining a robust growth trajectory suggests strong market validation and confidence in its business model. The decision to stay the course may strengthen the company’s position in the cybersecurity market and enhance its reputation as a leading innovator in the field.
In essence, Wiz’s choice to reject Google’s offer highlights the company’s strategic priorities and commitment to its mission. It reflects a broader narrative in the tech industry where companies are increasingly prioritising growth and independence over short-term financial gains.
