Wiz: The Cyber Firm That Turned Down Google’s $23bn Buyout
In an unprecedented shock announcement, a startup Wiz has turned down a US$23bn acquisition offer from Google's parent company, Alphabet.
This decision, communicated through an internal memo from Wiz CEO Assaf Rappaport, marks a significant moment in the tech industry, as it would have been the largest acquisition in Google's 25-year history.
“Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice,” Assaf said in a company memo. “The market validation we have experienced following this news only reinforces our goal – creating a platform that both security and development teams love.”
The Wiz CEO instead outlined the next targets for the cybersecurity firm, aiming to reach US$1bn in annual recurring revenue and an initial public offering (IPO).
The rejection of such a substantial offer, which only weeks ago was looking set to go through, has sent ripples through the tech world, spotlighting the startup’s meteoric rise and its potential for future growth.
But who exactly is Wiz, and how has it become such a coveted asset in the cybersecurity landscape?
Wiz’s whirlwind rise
Founded in 2020 and headquartered in New York City, the Israeli cybersecurity startup Wiz has quickly established itself as a leader in cloud security.
The company offers cloud-based cybersecurity solutions powered by AI, helping organisations identify and mitigate critical risks on cloud platforms.
Wiz's innovative approach provides visual displays using graphs and charts to illustrate a company's entire cloud security architecture, making it straightforward to identify threats and potential weaknesses.
It is through these methods, the firm has discovered and responsibly disclosed numerous cloud vulnerabilities that garnered significant media coverage.
Reasons like this is why Wiz has raised a total of US$1.9bn in investment, became the fastest-growing software company in history in 2022 and achieved an annual revenue of US$100m less than 18 months after it was founded. Wiz more than tripled this figure in 2023, making US$350m in revenue.
Wiz's timing was fortuitous, as the Covid pandemic forced companies to seek cloud-based security solutions rather than on-site setups.
This shift, combined with Wiz's innovative approach, allowed the company to attract major clients rapidly.
Today, Wiz serves 40% of Fortune 100 companies, including Morgan Stanley, DocuSign, and BMW, and had reached a valuation of US$12bn in May this year.
Where next for Wiz?
With hybrid work and AI solutions pushing more companies onto the cloud, and cyber attacks increasing, Wiz is well placed to continue riding the wave upwards.
Looking past what the IPO and annual revenue plans, Wiz end goal of getting on the stock market could open up even more investment to not only improve their solution but valuation.
While Wiz may have turned down what would have been the biggest acquisition bid ever offered by Alphabet, and missed out on joining the array of cyber companies creating the defensive posture of Google Cloud, the company's meteoric rise and ambitious goals suggest it may reach massive heights regardless.
As the cybersecurity landscape continues to evolve, all eyes will be on Wiz to see if it can maintain its impressive growth trajectory and potentially become one of the next tech giants.
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