Wiz: Cybersecurity Firm Rejects Google’s $23 Billion Takeover Offer

Background:

Israeli cybersecurity firm Wiz has made headlines by turning down a whopping $23 billion takeover offer from none other than Google’s parent company, Alphabet. This potential acquisition would have been Google’s largest-ever. But Wiz founder and chief executive Assaf Rappaport had other plans.

The Rejection:

In an internal memo to Wiz staff, Rappaport expressed that he was “flattered” by the offer. However, the company decided to chart its own course. Instead of selling out, Wiz aims to achieve $1 billion in revenue before considering an initial public offering (IPO). That’s right—they’re betting on their ability to become the biggest cybersecurity company globally without Google’s embrace.

Wiz’s Journey:

Wiz isn’t your run-of-the-mill startup. Its founders—Assaf Rappaport, Ami Luttwak, Roy Reznik, and Yinon Costic—first crossed paths while serving in the Israeli military’s equivalent of the UK’s GCHQ or the US National Security Agency. Their collective experience led them to create Adallom, a cybersecurity company that Microsoft acquired for $320 million in 2012. But they didn’t stop there. In March 2020, they launched Wiz, and it’s been a rocket ride ever since.

Why the Excitement?

Commentators attribute the founders’ Microsoft stint to Alphabet’s interest in Wiz. The team’s willingness to walk away from a billion-dollar payday and bet on long-term success has garnered admiration. As Neil Shah, head of tech at the London Stock Exchange, put it: “This is the mindset we need in Europe.”

What’s Next?

Wiz has bases in New York, Tel Aviv, and three other US locations. Their decision to reject Google’s offer sends a powerful message: Sometimes, the allure of independence and the thrill of building something extraordinary outweigh even the most tempting buyout offers.

And so, Wiz marches forward, aiming to secure its place in the cybersecurity hall of fame.1