Wiz Rejects $23 Billion Acquisition Offer from Google Parent Alphabet
- Wiz, a New York-based cloud security firm, has turned down a substantial acquisition bid of $23 billion from Alphabet, Google's parent company.
- The decision was communicated in an internal memo reviewed by CNBC.
- This rejection signals Wiz's intent to maintain independence in the rapidly evolving tech landscape.
NEW YORK (AP) — Cybersecurity startup Wiz has turned down a $23 billion acquisition proposal from Alphabet, Google's parent company, as it shifts focus back to its planned initial public offering (IPO). In a memo to employees, CEO Assaf Rappaport acknowledged the difficulty of rejecting such a significant offer but emphasized the company's commitment to achieving its own milestones, including going public and reaching $1 billion in annual recurring revenue. The potential acquisition had generated considerable excitement in the tech community, with reports of advanced talks circulating in the media. However, neither Wiz nor Alphabet confirmed these discussions, and Rappaport's memo only hinted at the "buzz about a potential acquisition" without naming Google. The decision to reject the offer marks a significant moment in the tech landscape, as it would have been the largest acquisition in Google's history. Analysts from Wedbush noted that the failed deal could have ripple effects across the tech sector, potentially accelerating Google's cybersecurity initiatives. The acquisition was seen as a strategic move to bolster Alphabet's position in the competitive cloud computing market, currently dominated by Amazon and Microsoft. However, the ongoing scrutiny from regulators regarding antitrust issues may have complicated the situation. Wiz, founded four years ago and based in New York, specializes in security tools for protecting data in remote data centers. The company recently raised $1 billion in funding, valuing it at $12 billion, indicating strong investor confidence in its future prospects.