Zscaler CEO denies Broadcom takeover rumors

In a LinkedIn post on Wednesday, Jay Chaudhry, CEO, president and founder of Zscaler, strongly denied rumors that the cloud security company was considering acquisition offers from Broadcom.

“I want to make it clear that neither I nor Zscaler’s management is seeking or accepting any offers to acquire Zscaler. Any reports claiming otherwise are false,” Chaudhry wrote. The rumors appear to stem from an anonymous post published a week ago on Substack that claimed Broadcom had made a $38 billion bid for Zscaler.

Chaudhry emphasized Zscaler’s strong position in the rapidly growing zero-trust security market. “Zscaler is at the forefront of a major technological breakthrough, and I believe we are in a great position to lead the future of zero trust security,” he said.

The CEO directed investors to Zscaler’s official channels, including its website, investor relations website, blog, press releases, SEC filings and social media, for any relevant information about the company’s future operations.

Founded in 2007, Zscaler is a leading provider of cloud-based security solutions. The Zero Trust Exchange platform helps enterprises securely connect users, devices and applications using zero trust principles. In recent months, Zscaler has made strategic acquisitions to expand its zero trust capabilities, including Airgap Networks for agentless network segmentation and Avalor for AI-powered data protection.

In the most recent quarter, the company reported revenue of $525 million and a net loss of $28.5 million. Third-quarter fiscal 2024 results are scheduled for May 30. Chaudhry’s statement had no impact on Zscaler’s stock price in after-hours trading because markets were closed for the Memorial Day holiday.