July 23, 2024 at 10:39AM
Wiz has declined Alphabet’s $23 billion takeover bid, opting instead for an IPO and aiming for $1 billion in annual recurring revenue. Regulatory concerns may have played a part, given Google’s antitrust scrutiny. The cybersecurity firm, valued at $12 billion, has raised $1.9 billion in funding and acquired Gem Security, forecasting a 2024 of industry consolidation.
From the meeting notes, the key takeaways are:
1. Wiz, a cybersecurity firm, has rejected a $23 billion takeover bid by Google’s parent company, Alphabet, and is instead aiming for $1 billion in annual recurring revenue (ARR) and an initial public offering (IPO).
2. Despite widespread reporting of the potential deal, it was not confirmed and may have faced regulatory pressure or antitrust scrutiny.
3. Google previously acquired Mandiant for $5.4 billion in 2022, but was allegedly willing to pay much more for Wiz before the deal fell through.
4. Big tech takeovers face growing regulatory scrutiny, as seen with Adobe dropping a $20 billion Figma takeover due to pressure from watchdogs, but Broadcom successfully acquiring VMware.
5. Wiz, originally founded in Israel, moved its headquarters to New York and was valued at $12 billion in May after raising $1 billion in investment, which was described as the biggest cybersecurity round of the year.
6. Wiz has a total of $1.9 billion in funding, and has also made acquisitions of its own, including Gem Security.
7. Wiz’s CEO, Assaf Rappaport, has predicted 2024 to be a year of consolidation in the cybersecurity world, indicating an expectation for industry-wide changes.
These takeaways provide a clear understanding of the recent developments and strategic direction of Wiz, as well as the broader context of big tech takeovers and regulatory challenges.