Cyber security startup Wiz reportedly rejects $23 billion acquisition proposal from Google
Wiz, a cloud security firm based in New York, has rejected a proposed $23 billion acquisition deal offered by Google parent Alphabet, according to a Wiz memo seen by CNBC
NEW YORK — Wiz has rejected a reported $23 billion acquisition proposal from Google parent Alphabet — as the cybersecurity startup pivots back to a previously-planned initial public offering, according to a company memo seen by CNBC and others.
That ends the prospect of what would've been the most expensive acquisition in Google’s 25-year history. In a Monday memo to Wiz employees, as reported by CNBC, CEO Assaf Rappaport noted “saying no to such humbling offers is tough” but that the company had instead chosen to focus on its own next milestones — which include going public and reaching $1 billion in annual recurring revenue.
Wiz and Google did not immediately respond to The Associated Press' requests for comment Tuesday.
Excitement around Wiz potentially inking a deal with Alphabet grew largely over the last week, as multiple outlets cited unnamed sources familiar with advanced talks, but neither company officially acknowledged the discussions. According to CNN, which also saw Wiz's memo, Monday's note to employees did not mention Google or its parent by name — with Rappaport just alluding to «buzz about a potential acquisition.”
Acquisition talks between companies can be very unpredictable — and, especially in today's world of Big Tech, often open the door for antitrust concerns.
The proposed deal to acquire Wiz, while now off the table, was aimed at elevating Alphabet's profile in the cloud computing market, a space currently led by Amazon and Microsoft.
That current pecking order may have given the Mountain View, California company some wiggle
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