GOOGL: Google’s Record $23B Bid for Wiz Gets Rejected, Cyber Startup Will Pursue IPO

Cybersecurity firm turned down giant search engine with ambitions to pursue public listing through an IPO.

• Google GOOGL got turned down on its mega deal by a fledgling startup. Cyber security company Wiz, for which the search engine giant was ready to pay $23 billion, walked away from the deal and is now looking to raise money and pursue a market flotation through an initial public offering (IPO). The major reversal slammed the door shut to the largest deal in Google’s history.
• Wiz announced its decision to terminate the proposed acquisition with an email to its 1,000+ employees. “While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz,” the Israeli company said. Google hasn’t made an official statement yet but judging by the stock’s muted reaction, investors don’t seem to mind too much.
• Wiz, which generates about $500 million in recurring revenue per year, boasted a valuation of $12 billion earlier this year and has the backing of big-shot venture capital players Andreessen Horowitz, Sequoia Capital and Thrive Capital. Wiz was founded just four years ago and its bread and butter is to sell cybersecurity software for cloud computing. Apparently, not through Google.