Wiz rejects Google’s $23 billion takeover in favor of IPO
VergeJUL 14 2024
Cloud computing start-up Wiz has announced that it will not accept Google parent company Alphabet's acquisition offer of $23B, instead choosing to pursue an initial public offering (IPO) of $1B. CEO Assaf Rappaport cited US anti-trust and investor concerns as reasons.
Wiz, founded by four former Israeli military officers in 2020, has been valued at $12B, making the decision to back out of the deal "tough," according to Rappaport. The co-founders each own 9% of the company, with venture firms Index Ventures, Sequoia Capital, and Thrive Capital, among others, also owning stakes.
The deal would have been Google's largest-ever acquisition—almost double its $12.5B purchase of Motorola Mobility in 2012. The tech giant is competing against Microsoft in the race for cybersecurity dominance, for which Wiz is a growing player.