$23 billion Wiz valuation offer from Alphabet.
The Wiz acquisition could have been Google’s major acquisition ever, according to SunriseGeek. Even if Google has other cybersecurity companies in their portfolio, they want to end the agreement with Wiz. They want to do this to highlight their edge in cybersecurity. Antitrust and concerns from Wiz investors led to the cancellation of the Wiz acquisition.
Wiz is a cloud security startup from Israel founded in 2020. The company sells software that helps businesses scan cloud deployments. After that, they find and fix the security problems that can be an exposure to data theft. Wiz has data from Amazon Web Services, Microsoft Azure, and Google Cloud. Wiz’s cloud security services have attracted interest from many companies. These services would have helped Google compete with Microsoft Corp.
Wiz stated that they want to expand their cloud security platform and will do this through acquisitions. The cybersecurity company raised a $1 billion Series E at a $12 billion Wiz valuation. This Wiz valuation makes it the most highly valued startup.
Alphabet is the parent of Google and has an income of $9.5 billion in its first fiscal quarter. Google stated a rough security strategy and included two new threat intel. They plan to involve AI in the cybersecurity market.
Wiz’s management team and the Wiz investors have decided to stay independent. The offer is a significant premium over their last private Wiz valuation of $12 billion. Assaf Rappaport, the Wiz’s CEO, announced the Wiz’s 1200 employees: ”Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice.”
He added: ”The market validation we have experienced following this news only reinforces our goal, creating a platform that both security and development teams love. We are grateful for the faith our employees, investors, and customers have in us, as we build the best cybersecurity company in the world.”
The failure of the Wiz acquisition shows that tech exits have been rare. Startups like Wiz expect receptive markets before going public. Monied companies are conscious of not winning administrative authorization for transactions.
If the Wiz acquisition ended, the deal could set the stage for a significant change in the Big Tech M&A landscape. The deal was a strategic move from Google to help compete with significant rivals like Amazon and Microsoft.
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