Israeli Cybersecurity Startup Wiz Rejects Google's $23 Billion Acquisition Offer, Confident in Independent Growth

New York, New York, USA United States of America
Discussions between Google and Wiz began after the startup raised $1 billion from venture capital investors.
Google aims to increase market share and tap into demand for AI-driven services in its cloud unit.
Israeli cybersecurity startup Wiz has rejected Google's $23 billion acquisition offer.
Wiz provides cloud-based cybersecurity solutions and has raised a total of $1.4 billion in funding.
Wiz was founded by four former Israeli military officers and counts Index Ventures, Sequoia Capital, Thrive Capital, and Microsoft among its investors.
Israeli Cybersecurity Startup Wiz Rejects Google's $23 Billion Acquisition Offer, Confident in Independent Growth

In a surprising turn of events, Israeli cybersecurity startup Wiz has announced that it has ended negotiations with Google's parent company Alphabet over a proposed $23 billion acquisition offer. The news was broken by Wiz CEO Assaf Rappaport in an email to employees, in which he expressed confidence in the company's ability to grow independently and generate $1 billion in annual revenue.

According to reports, discussions between Google and Wiz began after the startup raised $1 billion from venture capital investors earlier this year. The acquisition offer represented a substantial premium over Wiz's last private valuation of $12 billion. However, the management team and investors have opted to remain independent.

Wiz provides cloud-based cybersecurity solutions that help companies identify and remove critical risks on cloud platforms. The company's decision to call off the deal is a setback for Google, which has been investing in its cloud infrastructure and focusing on winning clients for its cloud business. It is also the second recent blow for Alphabet in its mergers and acquisitions (M&A) efforts, after it reportedly decided to walk away from a deal for online marketing software company HubSpot.

Google's stock could still rise on the back of strong Q2 cloud growth, despite the busted Wiz deal. The Google Cloud unit aims to increase market share and tap into demand for AI-driven services. However, regulatory review processes and antitrust problems could pose challenges to Alphabet's M&A efforts in the future.

Wiz was founded in 2020 by four former Israeli military officers who previously co-founded a cloud cybersecurity company called Adallom that Microsoft later acquired for $320 million. The startup has raised a total of $1.4 billion in funding to date and counts Index Ventures, Sequoia Capital, Thrive Capital, and Microsoft among its investors.

Despite the rejection of Google's acquisition offer, Wiz remains focused on its growth plans and hiring and retaining employees. The company has offices in New York, Israel, and other locations around the world.


Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image

Confidence

91%

Doubts
  • Is it confirmed that Google was the only suitor for Wiz's acquisition?
  • What specific reasons were given by Wiz for rejecting the offer?

Sources

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Israeli cybersecurity startup Wiz ends talks with Google on $23 billion deal

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Matt Egan Tuesday, 23 July 2024 08:05
  • Unique Points
    • Wiz has ended talks with Google’s parent company Alphabet on a proposed $23 billion deal
    • Wiz CEO Assaf Rappaport announced the company would focus on an initial public offering and growing the business to generate $1 billion in annual revenue
  • Accuracy
    • Google had been in advanced talks to buy Wiz for roughly $23 billion after Wiz raised $1 billion from venture capital investors earlier this year
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Google Stock Could Rise On Q2 Cloud Growth Despite Busted Wiz Deal

Forbes Magazine Peter Cohan Tuesday, 23 July 2024 00:00
  • Unique Points
    • Google's acquisition bid for cloud security startup Wiz was rejected
    • Wiz aims to reach $1 billion in annual recurring revenue before going public
    • Google Cloud unit aims to increase market share and tap into demand for AI-driven services
  • Accuracy
    • Discussions between Google and Wiz began after Wiz’s funding round had valued the startup at $12 billion
    • Wiz has ended talks with Google’s parent company Alphabet on a proposed $23 billion deal
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The author makes several appeals to authority in the article. He cites Forbes, CNBC, and his own book 'Brain Rush' multiple times to support his hypotheses and analysis. While these sources may be credible, the repeated use of them as evidence without directly quoting or referencing specific information from these sources can be seen as a potential appeal to authority fallacy. Additionally, the author makes some dichotomous depictions by presenting Google's acquisition of Wiz as a 'growth pillar' that would have 'propelled Google stock,' and later stating that its collapse leaves Google Cloud with a 'key challenge.' These statements oversimplify the situation and do not fully consider all possible factors. Lastly, the author uses some inflammatory rhetoric by referring to Chair of the Federal Trade Commission, Lina Khan, as having 'killed another deal,' which can be seen as an attempt to incite strong emotions.
    • ] The appeal of the deal for Google was fairly clear. Wiz's cloud security products — including prevention, active detection and response — appeal to large firms and would have helped Google compete[...] My hypotheses include: Google Cloud's strategy is not clearly articulated; however some of the company's AI applications [...] hold some potential to boost Google Cloud's growth, according to my new book, Brain Rush.[
    • Saying no to such humbling offers is tough,
    • It remains unclear when AI will start to generate revenue for Google’s Cloud or ad businesses. It is still too early to count on AI benefits as most [companies] remain in pilot mode, and material AI [revenue] is more likely a 2025-26 event.
    • Why did Rappaport walk away from the deal? A person familiar with Wiz’s thinking cited antitrust and investor concerns as part of the reason for abandoning a potential deal.
    • Referring to the chair of the Federal Trade Commission, Lina Khan killed another deal.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Wiz walks away from Google’s $23B acquisition offer: Read the CEO's note to employees

TechCrunch Marina Temkin Tuesday, 23 July 2024 03:04
  • Unique Points
    • Wiz has turned down a $23 billion acquisition offer from Alphabet, Google’s parent company.
    • Each founder, including Rappaport, Costica, Reznik, and Luttwak, owns 9% of Wiz.
    • Wiz was founded in 2020 by four former Israeli military officers who previously co-founded a cloud cybersecurity company called Adallom that Microsoft later acquired for $320 million.
  • Accuracy
    • ]The offer represented a substantial premium over Wiz's last private valuation of $12 billion[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication