Why this Israeli startup said no to Google’s ‘$23 billion acquisition offer’

Google-parent Alphabet’s plans to acquire cybersecurity startup Wiz have reportedly fallen through. The Israeli company is said to have said no to the acquisition, which the media reports pegged at $23 billion. Had the deal proceeded, it would have been Google’s largest-ever acquisition to date. In a memo to its employees, Wiz CEO Assaf Rappaport wrote why the company didn’t go ahead with the deal.

Why Wiz decided to call off the ‘Google deal’

In the memo seen by The Guardian, Rappaport wrote: “I know the last week has been intense, with the buzz about a potential acquisition. While we are flattered by the offers we have received, we have chosen to continue on our path to building Wiz. Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice. The market validation we have experienced following this news only reinforces our goal – creating a platform that both security and development teams love.”
Rappaport also said that Wiz will focus on its next milestones — an initial public offering and $1 billion in annual recurring revenue. The company had been reportedly eyeing both targets well before talks with Google had been reported.
Meanwhile, another person familiar with Wiz’s decision (who requested anonymity) reportedly told CNBC that the company considered anti-trust and investor concerns as the reasons for abandoning the potential deal with Google.