Israeli cybersecurity startup Wiz has ended discussions with Alphabet, Google’s parent company, over a proposed $23 billion acquisition. The deal would have marked Alphabet’s largest-ever purchase.
In a memo seen by CNN, Wiz CEO Assaf Rappaport announced the company’s shift in focus towards an initial public offering (IPO) and aiming to grow annual revenues to $1 billion. “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,” Rappaport stated. “Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.”
Although neither Alphabet nor Wiz officially confirmed the talks, CNN previously reported that Alphabet was in advanced negotiations to acquire Wiz for around $23 billion. These discussions began after Wiz raised $1 billion from venture capital investors earlier this year, valuing the startup at $12 billion.
Wiz specializes in cloud-based cybersecurity solutions that help companies identify and mitigate critical risks on cloud platforms. The decision to remain independent is a setback for Google, which has been heavily investing in cloud infrastructure and aiming to boost its cloud business, which generated over $33 billion in revenues last year.
This development follows another recent disappointment for Alphabet, as it reportedly walked away from a deal with online marketing software company HubSpot. Despite this, Alphabet continues to pursue its strategy in the cybersecurity space, as evidenced by its $5.4 billion acquisition of Mandiant in March 2022 to enhance its cloud computing and cybersecurity capabilities.
