Deal Value: The cybersecurity startup Wiz has ended talks with Google-parent Alphabet on
a reported $23 billion deal ¹.
Reason for Calling Off the Deal: Wiz CEO Assaf Rappaport said the company would now
focus on an initial public offering, as it had planned earlier, and aims to achieve an annual
recurring revenue of $1 billion ¹.
Impact on Google: Wiz’s decision to call off the deal will be a setback for Google, which has
been investing in its cloud infrastructure and focusing on winning clients for the cloud
business that generated more than $33 billion in revenues last year ¹.
Wiz’s Offerings: Wiz provides cloud-based cybersecurity solutions that help companies
identify and remove critical risks on cloud platforms, powered by artificial intelligence ¹.
Recent Funding: In May, Wiz raised $1 billion in a private funding round at a $12 billion
valuation .
In a surprise move, Israeli cybersecurity startup Wiz has ended talks with Google-parent
Alphabet on a reported $23 billion deal, according to a memo seen by Reuters. The deal
would have been Google’s largest-ever acquisition.
Wiz CEO Assaf Rappaport stated that the company will now focus on an initial public
offering, as previously planned, and aims to achieve an annual recurring revenue of $1
billion. Rappaport expressed confidence in the company’s exceptional team and its ability
to make this choice.
Neither Alphabet nor Wiz have officially acknowledged deal talks. Google did not
immediately respond to a Reuters request for comment, while Wiz declined to comment.
The deal’s collapse is a setback for Google, which has been investing in its cloud
infrastructure and focusing on winning clients for the cloud business that generated over
$33 billion in revenues last year.
Wiz provides cloud-based cybersecurity solutions powered by artificial intelligence,
helping companies identify and remove critical risks on cloud platforms. The company
raised $1 billion in a private funding round at a $12 billion valuation in May.
This is the second blow for Alphabet in the M&A space, following reports of its decision to
walk away from a deal for online marketing software company HubSpot. Wiz would have
been Alphabet’s second big acquisition in the cybersecurity space, since its $5.4 billion
purchase of Mandiant in 2022.
