Wiz Abandoned $23 Billion Acquisition Talks with Alphabet

After recent rumors on the possible acquisition, Israeli cybersecurity firm Wiz abandoned talks on a proposed $23 billion deal with Alphabet. The security specialist is reportedly opting to focus on a potential IPO instead.

According to an internal email, Wiz CEO Assaf Rappaport stated rejecting such humbling offers is tough but noted the move was the right choice. He did not mention Alphabet directly in the memo. Rappaport added the company will now focus on an initial plan to launch an IPO, to achieve an annual recurring revenue of $1 billion.

Wiz and Alphabet entered talks over a potential deal earlier this month which would have been the Google-parent’s largest-ever acquisition, as it attempts to beef up its security business. It made a major play in the segment in 2022, acquiring Mandiant for $5.4 billion. Members of the board of directors at Wiz and Alphabet feared the deal might not get past antitrust regulators, given the scrutiny around Big Tech mergers and acquisitions in recent years.