Google and Wiz have formally halted the discussion over a potential acquisition, according to a Wiz team internal email.
TakeAway Points:
- The $23 billion acquisition talks between Google and Wiz, which would have been the company’s largest acquisition and the largest venture-backed agreement, have come to a stop.
- Wiz’s resolve to be independent demonstrates its faith in its expansion plan and prospects for additional strategic gains.
- Now, Google needs to look into additional ways to improve its cybersecurity skills, such as through internal investments or new acquisitions.
Acquisition Talks stops
Wiz and Google have officially ended discussions regarding a potential acquisition, as confirmed by an internal email sent to Wiz employees. The deal, valued at $23 billion, would have marked the largest-ever purchase of a venture-backed company. Google’s parent company, Alphabet, had been in negotiations to acquire the Israeli cybersecurity firm, which would have also been the largest acquisition in the search giant’s history.
In the email, Wiz stated, “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.” This decision underscores the company’s commitment to its independent growth strategy. A second source corroborated that the deal had indeed fallen through. Google has yet to provide an official comment on the matter.
The acquisition deal’s relevance
The proposed $23 billion acquisition was significant not only for its size but also for its potential impact on the cybersecurity landscape. Wiz, a rapidly growing player in the cybersecurity sector, has been attracting considerable attention for its innovative solutions and robust growth metrics. The acquisition by Google would have provided the tech giant with a substantial foothold in the cybersecurity market, complementing its existing cloud and enterprise services.
The termination of the talks leaves Wiz to continue its trajectory as an independent entity. The company’s decision to remain independent suggests confidence in its current business model and future prospects. This move could also signal Wiz’s intention to pursue other strategic opportunities or partnerships that align more closely with its long-term goals.
Market Reactions
The news of the terminated acquisition talks is likely to have various implications for both companies. For Google, the end of these discussions means the search giant will need to explore other avenues to bolster its cybersecurity capabilities. This could involve looking at other potential acquisitions or investing more heavily in its internal cybersecurity initiatives.
For Wiz, the decision to remain independent may be seen as a positive signal by investors and stakeholders, indicating the company’s strong market position and growth potential. However, it also places the onus on Wiz to continue delivering on its growth promises and maintaining its competitive edge in a rapidly evolving industry.
About WIZ
Wiz, Inc. is a startup company focused on cloud security, based in New York City. Assaf Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak—all of whom had previously created Adallom—launched the business in January 2020. Luttwak is the CTO, Reznik is the VP of Engineering, Costica is the VP of Product, and Rappaport is the CEO. Using a combination of risk factors, the company’s platform examines computer infrastructure hosted in Kubernetes, Microsoft Azure, Google Cloud Platform, Oracle Cloud Infrastructure, and Amazon Web Services to identify combinations that could enable malevolent actors to take control of cloud resources and/or steal sensitive data.
