Israeli cybersecurity startup Wiz walks away from Google's $23B acquisition offer; Wiz CEO Assaf Rappaport tells staff that Wiz will pursue an IPO as planned

Wiz has walked away from a $23 billion deal to be acquired by Google, in what would have been the search giant's largest ever deal …

CNBC 2024-07-23

Context & Ripple Effects

Wiz’s decision interrupts a proposed $23B sale just as the company and its founders were under close scrutiny in coverage of the prospective transaction. It preserves the IPO route that Assaf Rappaport told employees remained the plan.

The episode became an important negotiating waypoint rather than the end of Google’s interest: related coverage later records Google’s completed $32B purchase of Wiz and a subsequent DOJ review conclusion for the planned deal.

First-order effects

Wiz remains independent and must shift management attention back to IPO preparation rather than integration planning.
Google loses the chance to bring Wiz into its business under the proposed $23B terms, while Wiz’s investors and employees remain exposed to the outcome of a standalone public-market path.

Second-order effects

The withdrawal gives Wiz more leverage in any renewed strategic discussions, while requiring Google to reassess whether to pursue the company again or rely on internal and other security offerings.
An IPO plan makes Wiz’s operating execution and growth narrative more consequential to stakeholders than a near-term acquisition closing; later coverage of the company’s $1B annualized-revenue target underscores why those standalone metrics mattered.

Third-order effects

If high-growth cybersecurity companies can credibly choose between IPOs and strategic sales, large buyers may need to offer higher prices or clearer closing certainty to secure scarce cloud-security assets.
The later return to a larger Google-Wiz transaction suggests that an initial rejection can reset deal terms rather than permanently settle ownership, though each case will depend on company performance and regulatory review.

The trend: Cloud-security leaders are gaining greater leverage to choose between public-market independence and increasingly large strategic acquisitions.

Discussion

@ulonnaya Tage on x
Wiz walks away from Google's $23B acquisition offer: Read the CEO's note to employees. “Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO.” https://techcrunch.com/...
@alexrkonrad Alex Konrad on x
Wiz shot first by announcing its proposed $23 billion sale to Google was off via an email from CEO Assaf Rappaport to 1,000+ employees that was always going to leak. “Wiz Walks Away” is the story then, tonight. It will be interesting to see if Google backs up that narrative. [ima…
@alexeheath Alex Heath on x
@alexrkonrad *always going to *immediately leaked intentionally to everyone for narrative leverage yes!
@eastdakota Matthew Prince on x
Surprising no one.
@tenreirodaniel Daniel Tenreiro on x
Legit inspiring move. Both M&A and IPO markets have been bone dry for 2 years & these guys still had the gumption to say no [image]
@zastocks @zastocks on x
Wiz is walking away from the $23B sale with Google. This comes after seeing the Crowdstrike debacle. This is what I've been talking about re: $S and $PANW. Competitors smell blood in the water. I see many brushing this off calling the drop a “buying opportunity.” Big mistake. [im…
@mattturck Matt Turck on x
I'm old enough to remember when Zuck walked away from a mere $1B. Simpler times. [image]
@alexrkonrad Alex Konrad on x
Remember: in 2023, Wiz told press it was looking Into buying SentinelOne, which led SentinelOne's CEO to call it a “nice little startup.” And this spring, Wiz was widely reported to be shopping for Lacework, another M+A deal that fell through. Chatty. https://www.forbes.com/...
@kwuchu Iheanyi Ekechukwu on x
Bruh, what? 😭 I don't understand this. They better hit $23b market cap from the IPO date OR I'd be pissed as an employee.
@rustybrick Barry Schwartz on x
That whizzed bye
@carnage4life Dare Obasanjo on x
This is Google's second failed acquisition this month given talks to acquire HubSpot fell apart a few weeks ago. Google is now going from struggling to ship products to struggling to acquire companies. Hopefully Q2 earnings end up being a bright spot. [image]
@ourielohayon Ouriel on x
spectacular internal message from the WIZ CEO to their team after they passed on the Google 23b acquisition
@whoiskatrin Kate on x
Wiz rejects Google's $23 billion acquisition offer, eyes IPO instead [image]
@nheudecker Nick Heudecker on x
It doesn't matter if Google backs it up. Wiz played 'em and now Google looks slow and ineffectual until the next rumor surfaces.
@yagizsozmen @yagizsozmen on x
Nope. Wiz has reportedly walked away from a $23 billion deal to be acquired by Google $GOOGL. The balls to reject $23b exit in 4 years 😳
r/technology r on reddit
Wiz walks away from $23 billion deal with Google, will pursue IPO
r/business r on reddit
Wiz walks away from $23 billion deal with Google, will pursue IPO
r/cybersecurity r on reddit
Wiz/Google looks to be dead

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