Security platform Wiz rejects $3.6 trillion acquisition by Google's parent company Alphabet, and plans to pursue an IPO as originally planned

In July 2024, it was reported that Alphabet, the parent company of Google, was planning to acquire Wiz , a fast-growing cloud security platform. If the acquisition had gone through, it would have been Alphabet's largest acquisition ever, but it was revealed that Wiz had rejected the deal and would instead pursue an IPO (initial public offering) as originally planned.

Google-Wiz deal fizzles out, company will pursue IPO
https://www.cnbc.com/2024/07/23/google-wiz-deal-dead.html

Cyber Firm Wiz Rejects Alphabet's $23 Billion Offer, Seeks IPO - Bloomberg
https://www.bloomberg.com/news/articles/2024-07-23/cyber-firm-wiz-rejects-alphabet-s-23-billion-offer-seeks-ipo

Wiz was founded by former Microsoft employee Assaf Rappaport and others, and provides an all-in-one cloud security service that collects data from cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud and detects security risk factors. The company has grown rapidly in recent years, announcing $1 billion (approximately 160 billion yen) in funding in May 2024.

Meanwhile, in July, The Wall Street Journal and other media reported that Alphabet was in talks to acquire Wiz for $23 billion (approximately 3.6 trillion yen). Wiz is expected to strengthen Google's cloud business and help it compete with Microsoft in security products, and if the acquisition was completed, it would have been Alphabet's largest acquisition ever.

Google's parent company Alphabet plans to acquire Wiz for over 3.6 trillion yen, which would be the company's largest acquisition ever - GIGAZINE

However, on July 23rd, Japan time, foreign media outlets such as CNBC and Bloomberg reported that 'Wiz has rejected the acquisition of Alphabet and has chosen to pursue an IPO as originally planned.'

'It would be difficult to turn down such an unreasonable offer, but our incredible team gave me the confidence to make this choice,' Wiz co-founder Rappaport said in a memo to employees.

Rappaport said Wiz's milestones, 'reaching $1 billion in annual recurring revenue' and 'achieving an IPO,' were two goals that had been set even before the acquisition report. 'The market scrutiny we've experienced following this news reinforces our goal of building a platform that both security and development teams love,' he said.