Israeli startup Wiz refused Google's multibillion-dollar offer, preferring the path of independent development and IPO. Cloud cybersecurity company aims to hit $1 billion in annual revenue 3|}} Google proposal and Wiz solution
According to information published in the media , Alphabet, the company that owns Google, made an offer to buy Israeli cybersecurity startup Wiz for a record $23 billion. However, Wiz management decided to reject this offer, preferring the path of independent development and going public through an IPO.
Management commentary and Wiz outlook
Wiz CEO Assaf Rappaport, in his address to employees, noted the complexity of the decision, given the scale offers. Despite this, the company intends to focus on achieving an ambitious goal of annual revenue of $1 billion, while simultaneously preparing for an initial public offering.
History and Achievements of Wiz
Founded in 2020 in Israel, Wiz has quickly become a prominent player in the cybersecurity market. In a short period of time, the company has achieved impressive results: annual revenue of approximately $350 million in 2023, cooperation with 40% of Fortune 100 companies, and attracting investments of $1 billion at a valuation of $12 billion.
Strategic Importance for Google
The acquisition of Wiz could significantly strengthen Google's position in the field of cloud security solutions, allowing it to better compete with such giants as Microsoft and Amazon. However, the deal could face obstacles due to increased antitrust scrutiny of Alphabet.
Previous Google Acquisitions
It's worth noting that Google has a history of acquiring cybersecurity companies. In 2022, Siemplify was acquired for $500 million and Mandiant for $5.4 billion, with the latter known for its involvement in the investigation of a large-scale cyberattack on SolarWinds.
Glossary
- Wiz is an Israeli startup specializing in cloud-based cybersecurity solutions
- Google - the largest search engine and technology company
- IPO - initial public offering of a company's shares on the stock exchange
- Fortune 100 - list of the hundred largest US companies according to Fortune magazine
- Alphabet - parent company of Google
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Answers to questions
Why did Wiz reject Google's acquisition offer?
Wiz has decided to focus on its own growth and achieving its goal of $1 billion in annual revenue, and is also planning an initial public offering (IPO). Despite the attractiveness of the offer, Wiz management chose to follow its long-term strategy.What successes has Wiz achieved in its short history?
In the three years since its founding, Wiz has achieved impressive results: the company's revenue in 2023 was about $350 million, it cooperates with 40% of the companies on the list Fortune 100 and attracted $1 billion in investment at a valuation of $12 billion. This indicates the rapid growth and high demand for Wiz's services in the cybersecurity market.How could Google benefit from acquiring Wiz?
Buying Wiz would allow Google to strengthen its position in cloud security and better compete with industry leaders Microsoft and Amazon. Wiz offers cutting-edge solutions for enterprise clients, which could significantly expand Google's cybersecurity portfolio.What factors could prevent a deal between Google and Wiz?
The main obstacle to the deal could be the increased antitrust scrutiny that Google faces. The US Department of Justice has already sued the company twice, and Google's anti-competitive practices were discussed at a special meeting. This could cause additional complications when attempting to acquire a company as large as Wiz.What previous cybersecurity acquisitions has Google made?
In 2022, Google acquired two cybersecurity companies. These are Siemplify for $500 million and Mandiant for $5.4 billion. Particularly noteworthy is the purchase of Mandiant, which is known for uncovering the massive SolarWinds hack. These acquisitions demonstrate Google's commitment to strengthening its position in the information security industry.Hashtags
#Technology of the Future #CybersecurityBusiness #StartupsAgainstGiants #Technology business #GoogleAcquisitions #BusinessSolutions #Israel Startups #ITIndustry #WizGoogleSave a link to this article
Discussion of the topic – How startup Wiz turned down Google's record $23 billion offer
2024-07-23
Israeli cyber startup Wiz has rejected a $23 billion acquisition offer from Google in what could have been the most expensive deal in the search giant's history. The article examines the reasons and consequences of this decision.
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