Google Parent & Wiz Terminate $23 Billion Acquisition Talks

Google's parent company, Alphabet Inc (GOOGL:US), and Israeli cybersecurity firm Wiz have ended discussions on a proposed $23 billion acquisition, halting what would have marked the biggest purchase of a venture-backed company. Media sources, citing company employees, reported that Wiz communicated to its staff on Monday, "While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz." 

Wiz, last valued at $12 billion and backed by major venture capital firms including Sequoia Capital and Thrive Capital, will now target an initial public offering. The email to staff did not specify a timeframe for the listing. Wiz and Google are yet to release an official statement on the matter.

Some members of both Alphabet and Wiz boards were skeptical the deal would pass regulatory scrutiny, according to two people familiar with the matter. Once the deal became public, factions on each board lobbied against it, ultimately leading to its termination.

Antitrust regulators have increasingly scrutinized Big Tech mergers. "Lina Khan killed another deal," one of the individuals involved in the talks said, referring to the chair of the Federal Trade Commission.

Previously, Adobe abandoned plans to acquire product design software company Figma for $20 billion last year, citing regulatory hurdles from UK and EU watchdogs. Similarly, Big Tech partnerships, like Microsoft's (MSFT:US) collaboration with OpenAI, are under regulatory review.

When it comes to congressional trading, Representative Ro Khanna was recently seen selling shares of Alphabet Inc. in June 2024, with the transaction ranging from $1,000 to $15,000.