Black smoke for the biggest acquisition ever by Google. The Israeli cybersecurity startup In fact, Wiz rejected the maxi offer of 23 million of dollars (around 21 billion euros) and has decided to continue along the path that will take it towards the stock exchange.
Wiz rejects Google's offer
Last week Alphabet, Google's parent company, presented an offer to acquire Wiz, a deal that many newspapers had practically taken for granted. After the acquisition of Mandiant, which took place 2 years ago for 5,4, for the Mountain View giant the one with Wiz would have been a strategic operation that would have allowed it to compete with Microsoft in the cloud services, offering more robust security solutions to its customers.
But Wiz said No. The refusal was announced Monday evening by one of the startup's founders, Assaf Rappaport, in a letter sent to employees, and the contents of which were published by CNBC. Rappaport said the company will now focus on an initial public offering and aims to achieve a annual recurring revenue of $1 billion. A source close to the startup's top management cited the doubts expressed by the antitrust and investors as among the causes of the operation's failure.
The deal would have nearly doubled the Wiz's valuation, currently at $12 billion. The company was founded just four years ago and reached $100 million in annual revenue after 18 months and $350 million last year.
If the deal between Wiz and Google had gone through it would have been the most expensive acquisition in Google's history, surpassing that of Motorola Mobility, which was acquired in 2012 for 12,5 billion dollars.
Alphabet towards the quarterly
In the meantime it rises the wait for the quarterly that Alphabet will present this evening after the markets are closed. According to analysts' expectations, the holding will present profits growing by almost 30% compared to the same period of a year ago, but the markets' eyes will focus above all on the numbers of online advertising and on the progress made in the field of generative AI and cloud.