Cloud Security Company Wiz Rejects Google's $23 Billion Acquisition Offer, Aiming for Future IPO

Previously, driven by the Google Cloud team, the company offered $23 billion to acquire the rapidly growing cloud network security company Wiz. This company primarily protects enterprise cloud infrastructure by creating a standardized layer across cloud environments, nipping potential significant security issues in the bud.

Despite being founded just 4 years ago, Google's offer of $23 billion highlights Wiz's rapid development. Therefore, Wiz has now decided not to proceed with Google's acquisition, continuing to operate independently.

Wiz's CEO sent an internal letter to the 1,200 employees, stating in the letter that although honored to receive the offer, the company has chosen to continue building Wiz. The company's next goal is to achieve an Annual Recurring Revenue (ARR) of $1 billion and to go public.

Wiz's current investors also strongly support this decision, as Wiz is already substantial enough to pursue an IPO, eliminating the need to sell to Google and become a subsidiary under Alphabet.

Another critical reason is that Wiz's existing customers are distributed across various cloud computing platforms, including Microsoft Azure, Amazon AWS, Google Cloud, etc. If Google were to acquire Wiz, it would inevitably trigger regulatory issues, as regulatory authorities would need to review the acquisition to prevent potential monopoly problems.

Considering these factors, Wiz's decision to reject Google's acquisition is very wise. After all, going public should be quite manageable for Wiz. If Google is genuinely interested, buying more shares after Wiz goes public might also be a way to indirectly strengthen their cooperation.