Cyber security company Wiz has rejected Google's $23 billion takeover bid. Instead, the startup plans to hold an IPO and reach $1 billion in annual revenue.
Wiz rejects Google
Billion dollar offer rejected
Cyber security startup Wiz has rejected Google's $23 billion acquisition offer, which would have been the search giant's largest ever deal, CNBC reports. Instead, Wiz intends to pursue its original plan to go public through an IPO.
Reasons for rejection and future plans
- Wiz CEO Asaf Rappaport noted in an internal message the difficulty of making the decision to decline such an offer.
- According to a source close to Wiz, the decision was influenced by antitrust concerns and investor sentiment.
- The company will focus on achieving two key goals: conducting an IPO and reaching $1 billion in annual revenue.
- These goals were defined back in May, before the start of negotiations with Google.
Wiz Growth and Potential
A possible deal could nearly double the startup's $12 billion valuation dollars, established during the last round of financing. Founded in 2020, Wiz hit $100 million in annual revenue in 18 months of operation, and last year that number grew to $350 million.
Competitive advantages and market position
Wiz cloud security products include preventative measures, proactive detection and response that appeal to large enterprises. This could strengthen Google's position in competition with Microsoft, which also offers security software.
Challenges for Google Cloud
The cloud division of Alphabet, the parent company of Google, has faced increased competition from market leaders Microsoft and Amazon. Although the cloud segment became profitable in 2023 after years of significant investment, it is under pressure to continue to grow, especially in the context of the development of artificial intelligence.
Glossary
- Wiz is a cybersecurity startup founded in 2020 that specializes on the protection of cloud environments.
- Google is an American technology company known for its search engine and cloud services.
- IPO (Initial Public Offering) - initial public placement of company shares on the stock exchange.
- Alphabet is the parent company of Google, which owns a variety of technology businesses.
- Microsoft is an American technology corporation, the main competitor of Google in the field of cloud technologies.
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Questions answered
What offer did Wiz get from Google and why did he turn it down?
What goals did Wiz set for himself after turning down the Google offer?
What financial performance has Wiz achieved since inception?
What products does Wiz offer and why are they attractive to large companies?
How Google's offer to acquire Wiz relates to competition in the cloud market ?
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Discussion of the topic – Wiz turns down $23 billion from Google: Course to IPO and independence
Cybersecurity startup Wiz rejected Google's $23 billion takeover offer, opting to go independent and plan an IPO. This decision could change the landscape of the technology industry and the cybersecurity market.
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Dmytro
Wow, Wiz gave up 23 billion! 🤯 This is an incredible amount. I wonder if they will regret this decision in the future?
Olena
Dmytro, I think this is a very bold move on their part. They clearly believe in their potential and want to maintain their independence. An IPO can bring them even more funds and freedom of action.
Pierre
I agree with Olena. Wiz shows impressive growth - from $100 million to $350 million in annual revenue in a year. If they continue at the same pace, then $1 billion in revenue is a very realistic goal. 📈
Isabella
And it seems to me that Google could give Wiz access to huge resources and a customer base. Cloud security is the future! 🔐 I wonder how they would develop under the wing of such a giant?
Hans
Pffft, another over-hyped startup. Think about it, you gave up a lot of money. They are probably just trying to inflate their price before the IPO. And then stocks will fall and everyone will be biting their elbows.
Maria
Hans, don't be such a pessimist! 😄 Wiz shows real results. As for the IPO, it is a chance for ordinary investors to join a promising company. I would gladly buy their shares!
Andrii
Wondering how this will affect the competition between Google Cloud and Microsoft Azure? 🤔 After all, Wiz could significantly strengthen Google's position in the field of cloud security.
Sophia
Andrii, you are right. But perhaps it's Wiz's independence that will allow them to work with a variety of cloud providers, not just Google. This may be better for the development of the industry as a whole. 🌐