Wiz gives up $23 billion
Company Visa withdrew from a $23 billion takeover deal Google and I’m planning my own AND AFTERThe failed deal could have been the biggest in the tech giant’s history.
Cybersecurity in the Cloud
Founded in 2020 Visa grew rapidly and the company reached $100 million in annual revenue recurring revenue after 18 months of operation. Development startup The Covid pandemic accelerated. Companies developed software and cloud infrastructurewhich supported remote work.
Google is missing an opportunity
Less than a year after its founding, Wiz has announced its first round of funding of $100 million. The proposed 2024 round by Alphabet the amount is more than twice the current one startup valuation amounting to $12 billion.
“Humiliating” valuation
“It’s hard to say no to such a humbling offer,” wrote the Wiz co-founder Assaf Rappaport in a memo obtained by CNBC journalists. A person close to Wiz’s board cited the company’s concerns about, among other things, the potential deal as a reason for rejecting it. tightening of antitrust law.
IPO and revenue growth
Rappaport wrote in a note to employees that the company would focus on its next milestones: an initial public offering and $1 billion in annual recurring revenue. Those were goals the startup had set for itself long before the Google talks broke.
Previous experience
The startup is involved in construction cloud security. After its acquisition, Alphabet could compete with the leaders in this market segment: Microsoft and Amazon. The founders of Wiz previously founded another security startup, Adalland sold the company to Microsoft for $320 million in 2015.
Suspended stock exchange debuts
IPO in the technology industry this year was a rarity. The changing regulatory environment in the EU and the unfavourable conditions on the broader market did not encourage startups to stock exchange debuts.
Alphabet is still investing
Google is still looking for new companies to acquire. In 2022, it paid $5.4 billion for a cybersecurity company Mandiant. Google’s biggest transaction to date remains the $12.5 billion acquisition of a mobile phone manufacturer Motorola in 2012. The company eventually sold it to Lenovo for $2.9 billion in 2014. Google recently ended takeover talks sales software manufacturerHubSpot.
Google did not respond to CNBC’s request for comment.
