Wiz, an Israeli cybersecurity firm, has just ended talks with Alphabet, Google's parent company, on a proposed $23 billion acquisition deal.
In an internal memo to staff seen by CNN and BBC News, Wiz founder and chief executive Assaf Rappaport said that while they were "flattered" by Google's offer, the company has chosen to focus on reaching $1 billion in revenue before considering selling its shares to the public.
"I know the last week has been intense, with the buzz about a potential acquisition. While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz," the memo read. "Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice."
A person familiar with the talks told BBC that Wiz also rejected the offer as it wanted to remain an independent company and was confident it had the resources to become one of the largest cybersecurity firms worldwide. On the other hand, a separate source who spoke with CNBC said Wiz abandoned the potential acquisition deal with Google due to antitrust and investor concerns.
It is important to note that neither Alphabet nor Wiz had officially acknowledged talks about an acquisition. In the memo, Wiz also did not mention Alphabet or Google by name. Rumors about Google's $23 billion acquisition of the Israeli company were floated by multiple outlets, citing unnamed sources familiar with the discussions.
Had the acquisition pushed through, it would have been the most expensive takeover in Google's 25-year history. It would have also doubled the startup's $12 billion valuation from its most recent funding round.
What Is Wiz?
Headquartered in New York, Wiz launched in March 2020---just before the COVID-19 pandemic. The firm grew quickly following its launch, reaching $100 million in annual revenue in 2022, just 18 months after it opened. In May of this year, WIz said it raised about $1 billion from venture capital investors in a funding round.
Wiz manufactures security tools designed to shield information stored in remote data centers from intruders.
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