Wiz, an Israeli cyber security business, has opted to cease talks with Google over a potential $23 billion takeover deal. Wiz intends to proceed with an initial public offering. The proposed acquisition would have been Google’s largest ever, expanding its cloud security capabilities. Assaf Rappaport, Wiz’s CEO, expressed confidence in the company’s decision to remain independent and focus on big growth targets. This event is viewed as a blow to Google’s strategic expansion in cyber security.
Wiz, launched in 2020, has rapidly expanded in the cloud security market, collaborating with key cloud providers such as Google, Amazon, and Microsoft. In May 2024, the company raised $1 billion in capital, increasing its valuation to $12 billion. Despite the potential benefits for Google, including improving its cloud business and competing more effectively with Microsoft and Amazon, Wiz’s leadership chose to pursue its course as an independent firm.
Neither Alphabet nor Wiz has officially confirmed the deal talks. The Wiz memo did not identify Google or Alphabet. Google did not immediately respond to a Reuters request for comment, and Wiz declined. Google’s possible acquisition, estimated to be worth $23 billion, would have been the company’s largest to date. The transaction was viewed as a deliberate move by Google to improve its cloud security capabilities and compete more effectively against industry giants like Microsoft and Amazon.
Google has been aggressively investing in its cloud infrastructure and services, hoping to increase its market share in the highly competitive cloud computing field. A successful acquisition of Wiz would have boosted Google’s cyber security services, particularly in the light of the rising demand for safe cloud solutions driven by advances in generative AI.
Considering the substantial offer, Wiz’s executives chose to remain independent and pursue an IPO. CEO Assaf Rappaport expressed confidence in the company’s capacity to reach its objectives without being bought. “Saying no to such embarrassing offers is tough, but with our exceptional team, I feel confident in making that choice,” Rappaport wrote in an employee memo.
