Cybersecurity giant Wiz has rejected the $23 billion acquisition offer from Google's parent company, Alphabet.
The Wall Street Journal reported last week that Google was eyeing a takeover of the cloud cybersecurity startup, while the New York Times had reported that the transaction was in the advanced stages of discussion but wasn't a sure thing by any stretch, a cautionary note vindicated by Wiz turning away from the deal this week.
Meanwhile, an internal Wiz email reportedly said: "While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz."
In a recent memo, Wiz's Chief Executive, Assaf Rappaport, outlined the company's ambitious goals in "building Wiz", which include achieving $1 billion in annual recurring revenue and preparing for an initial public offering:
Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice. The market validation we have experienced following this news only reinforces our goal – creating a platform that both security and development teams love.”
A $23 billion acquisition of Wiz would have been almost double Google’s previous largest acquisition when it bought Motorola Mobility for $12.5 billion in 2012.
However, the NYT also suggested that there was mooted scepticism the deal would pass regulatory scrutiny, with regulators increasingly vigilant around anti-competitive dealmaking.
