Photo Credit: Reuters
Wiz, an Israeli cybersecurity startup, has decided to terminate talks with Google-parent Alphabet regarding a potential acquisition worth $23 billion, according to a memo obtained by Reuters. This move, detailed by Wiz CEO Assaf Rappaport, pivots the company towards preparing for an initial public offering (IPO), aligning with its original strategic plans. Rappaport expressed confidence in this redirection, despite declining what he termed as “significant offers.”
Neither Alphabet nor Wiz have formally acknowledged the discussions in the memo, which notably avoids explicit mention of Google or Alphabet. Google has yet to respond to Reuters’ requests for comment, while Wiz has opted not to elaborate further on the matter.
Earlier this month, Reuters had reported that Alphabet was deep in negotiations to acquire Wiz for around $23 billion, a figure substantially higher than Wiz’s $12 billion valuation subsequent to a $1 billion funding round in May.
Specializing in AI-driven cybersecurity solutions for cloud platforms, Wiz’s decision to withdraw from the deal represents a setback for Google, which has been aggressively expanding its cloud infrastructure investments to bolster its presence in the cloud services market. This market generated more than $33 billion in revenue for Google last year.
This development marks another recent disappointment for Alphabet in its acquisition endeavors, following reports of its abandonment of talks to acquire HubSpot, an online marketing software company.
Had the acquisition proceeded, Wiz would have represented Alphabet’s second significant purchase in the cybersecurity sector, following its $5.4 billion acquisition of Mandiant in 2022.
