Alphabet loses chance for historic acquisition: Wiz opts to go public
With an estimated price tag of $23 billion (approximately CZK 534 billion), the planned acquisition of Israeli startup Wiz was to be the largest ever purchase by US tech giant Alphabet, the parent company of Google. The deal, if completed, would significantly strengthen Alphabet’s position in the cybersecurity field. However, Israeli startup Wiz eventually decided to end the negotiations.
Wiz CEO Assaf Rappaport, as reported by Reuters, announced that the company will now focus its efforts on going public, which was their original plan. The move should allow the company to achieve regular annual revenues of around one billion dollars. Rappaport further stated that despite advanced negotiations with Alphabet, they have decided to pursue a separate path of growth and development.
According to Reuters, the negotiations between Alphabet and Wiz were already at a very advanced stage. The amount offered would value the Israeli firm at nearly double its value as of May this year, when it raised $1 billion in funding and was valued at $12 billion. Wiz specializes in providing cloud-based cybersecurity solutions that help companies identify and eliminate critical risks on cloud platforms using artificial intelligence. This technology is increasingly in demand as data security in cloud environments becomes a priority for many organizations around the world.
The failure of this acquisition represents Alphabet’s second significant M&A blow in recent times. Recently, reports surfaced that the company had decided to back out of a deal with online marketing company HubSpot. Both of these situations indicate that Alphabet is facing challenges in expanding its portfolio through strategic acquisitions.
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