Why Wiz Rejects $23 Billion Google Offer ?

Wiz recently turned down a $23 billion acquisition offer from Google, which would have been the tech giant's largest acquisition and the biggest exit for an Israeli company.

Instead, Wiz is pursuing its original goal of going public. CEO Assaf Rappaport expressed confidence in the company's potential, citing milestones like reaching $1 billion in annual recurring revenue (ARR) and launching an IPO. Factors such as antitrust concerns and opportunities arising from a competitor's issues may have influenced this decision​

Wiz, a cloud security startup, helps scan providers like Microsoft Azure and AWS for vulnerabilities. The company, based in New York and backed by major investors such as Thrive Capital, Sequoia, Andreessen Horowitz, and Lightspeed, was most recently valued at $12 billion.

Founded in 2020, Wiz has quickly gained traction, boasting a client base that includes 40% of Fortune 100 companies and generating $350 million in annual recurring revenue. Despite a $23 billion acquisition offer from Google, Wiz opted to continue its path toward a potential IPO.

When we did a deep dive into the matter, we found that Wiz rejected Google's $23 billion acquisition offer due to a combination of factors. Wiz, confident in its strong growth trajectory, believes it can achieve more value through an IPO. With a $12 billion valuation and $350 million in annual recurring revenue, it has gained trust from high-profile investors and clients. This decision shows Wiz’s long-term vision to maintain independence and potentially grow beyond what Google could offer.

However, neither Wiz nor Google has made a formal statement about the breakdown of the $23 billion acquisition talks. Speculation persists that regulatory scrutiny may have played a role, as global regulators are increasingly critical of large tech acquisitions.

Similar concerns were raised with Adobe's planned $20 billion purchase of Figma, which was eventually abandoned after European and UK regulators voiced concerns over reduced competition in the design software market. This trend signals more cautious deal-making in the tech sector amidst regulatory pressure.