Wiz CEO "Will Pursue IPO"
Cybersecurity startup Wiz has reportedly rejected an acquisition offer from Alphabet (Google's parent company) worth 32 trillion won. Instead, Wiz plans to pursue an initial public offering (IPO).
On the 22nd (local time), The Wall Street Journal (WSJ), citing sources, reported that acquisition negotiations between Wiz and Alphabet, valued at $23 billion (approximately 31.9 trillion won), have fallen through.
Assaf Rappaport, CEO of Wiz, stated in an email to employees, "I understand there were many rumors last week about a potential acquisition of Wiz," adding, "While we are pleased to have received an offer, we have decided to continue on the path of building Wiz." He further explained that they are proceeding with the IPO as originally planned.
Founded in 2020, Wiz provides services that detect and eliminate security risks from large amounts of data stored in the cloud. In May, the company raised $1 billion from venture capital firms including Andreessen Horowitz, valuing the company at $12 billion (approximately 17 trillion won). Alphabet attracted industry attention by proposing an acquisition offer at twice that valuation.
CEO Rappaport has declared a goal of achieving $1 billion in annual recurring revenue (ARR) through subscription business ahead of the IPO. Sources explained that Wiz plans to reach this goal next year and go public within a few years. Currently, Wiz's ARR is about $500 million (approximately 700 billion won), half of the target.
Meanwhile, Alphabet is making aggressive investments in cybersecurity, including cloud services. Last year, Google Cloud's business revenue grew by 26%. Two years ago, Alphabet acquired the security company Mandiant for about $5.4 billion. On this day, Alphabet's stock closed at $183.35 on the New York Stock Exchange, up 2.21% from the previous session.
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