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Google and Wiz End $23 Billion Takeover Talks

Posted on by darion

Google and Wiz have officially put their potential acquisition talks on hold, according to an internal Wiz team email.

Conclusions:

  • Talks over a $23 billion takeover between Google and Wiz, which was expected to be the company’s largest acquisition and the largest venture-backed deal, have ended.
  • Wiz’s determination to pursue independence demonstrates its belief in its expansion plan and the prospect of additional strategic benefits.
  • Google now needs to look for additional ways to improve its cybersecurity competencies, such as through internal investments or new acquisitions.

Takeover talks have ended

Wiz and Google have officially finished discussions about a potential acquisition, according to an internal email sent to Wiz employees. The deal, valued at $23 billion, would mark the largest-ever acquisition of a venture-backed company. Google’s parent company, Alphabet, has been in negotiations to acquire the Israeli cybersecurity company, which would also be the largest acquisition in the search giant’s history.

In the email, Wiz said, “While we are honored by the offers we received, we have decided to continue on our path to building Wiz.” The decision underscores the company’s commitment to an independent growth strategy. A second source confirmed that the deal had indeed fallen through. Google has yet to comment on the matter.

Importance of the acquisition agreement

The proposed $23 billion acquisition was significant not only for its size but also for its potential impact on the cybersecurity landscape. A fast-growing player in the cybersecurity sector, Wiz has attracted significant attention for its innovative solutions and solid growth rates. An acquisition by Google would give the tech giant a significant foothold in the cybersecurity market, complementing its existing cloud and enterprise services.

The end of the talks leaves Wiz as an independent entity. The company’s decision to remain independent suggests confidence in its current business model and future prospects. The move could also signal Wiz’s intention to pursue other strategic opportunities or partnerships that are more aligned with its long-term goals.

Market reactions

The news that the acquisition talks have ended will likely have mixed implications for both companies. For Google, the end of those talks means the search giant will have to explore other options to bolster its cybersecurity capabilities. That could include considering other potential acquisitions or investing more in internal cybersecurity initiatives.

For Wiz, the decision to remain independent may be seen as a positive signal by investors and stakeholders, indicating the company’s strong market position and growth potential. However, it also places an obligation on Wiz to continue to deliver on its growth promises and maintain a competitive edge in a rapidly evolving industry.

About WIZ

Wiz, Inc. is a cloud security startup based in New York City. Assaf Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak — all of whom previously founded Adallom — launched the company in January 2020. Luttwak is the CTO, Reznik is the VP of Engineering, Costica is the VP of Product, and Rappaport is the CEO. Using a combination of risk factors, the company’s platform examines computing infrastructure hosted on Kubernetes, Microsoft Azure, Google Cloud Platform, Oracle Cloud Infrastructure, and Amazon Web Services to identify combinations that could allow malicious actors to take control of cloud resources and/or steal sensitive data.