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0 pointslight_triad1y ago0 comments

It was going to happen last year but Wiz said they wanted to IPO. Wonder what that implies about the larger IPO/exits market.

Here's the letter sent by the CEO Assaf Rappaport to his team at the time (2024):

"Wizards,

I know the last week has been intense, with the buzz about a potential acquisition. While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.

Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO.

Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice."

https://techcrunch.com/2024/07/22/wiz-walks-away-from-google...

0 comments

film421y ago

Wiz by itself is a great business and public markets will price it accordingly, but Google is able to price it much higher because of its unique position. Wiz + GCP sales team will boost adoption of the main product, a Google branded security tool keeps eyes from looking out, and of course, the ability to move huge amounts of revenue from competitors over to GCP is something only a hyper-scaler can tap. At 36x+ valuation, this is still a great deal for Google.

otterley1y ago

On what are you basing your opinion that this is a "great deal"? Google is going to have to earn close to $100B in profit attributable to this acquisition over the next 10 years in order to financially justify it.

SJC_Hacker1y ago

> On what are you basing your opinion that this is a "great deal"? Google is going to have to earn close to $100B in profit attributable to this acquisition over the next 10 years in order to financially justify it.

Maybe like the Motorola acquisition - not so much the profit attributle from the acquisition but the profit they *won't* lose by not acquiring them.

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film421y ago

It's smart defense, great offense, and a good product behind it. Each eat a big chunk of that $100B target. I don't see Wiz as a 10 year company, I see it as a forever requirement for companies to manage all of their cloud resources (across all providers). It will be here as long as GCP/AWS are here. I expect a short path to ROI on this one.

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otterley1y ago

A lot has happened in the last 56 days that has resulted in significant uncertainty in the stock markets. That, combined with the higher offer, apparently changed the board's mind.

dehrmann1y ago

> Wonder what that implies about the larger IPO/exits market

The window is closed and locked. Haven't closed the storm shutters yet.

varjag1y ago

LOL IPO market is dead for observable future.

j / k navigate · click thread line to collapse

0 pointslight_triad1y ago0 comments

It was going to happen last year but Wiz said they wanted to IPO. Wonder what that implies about the larger IPO/exits market.

Here's the letter sent by the CEO Assaf Rappaport to his team at the time (2024):

"Wizards,

I know the last week has been intense, with the buzz about a potential acquisition. While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.

Let me cut to the chase: our next milestones are $1 billion in ARR and an IPO.

Saying no to such humbling offers is tough, but with our exceptional team, I feel confident in making that choice."

https://techcrunch.com/2024/07/22/wiz-walks-away-from-google...

0 comments

film421y ago

otterley1y ago

SJC_Hacker1y ago

Maybe like the Motorola acquisition - not so much the profit attributle from the acquisition but the profit they *won't* lose by not acquiring them.

1 more reply

film421y ago

1 more reply

otterley1y ago

A lot has happened in the last 56 days that has resulted in significant uncertainty in the stock markets. That, combined with the higher offer, apparently changed the board's mind.

dehrmann1y ago

> Wonder what that implies about the larger IPO/exits market

The window is closed and locked. Haven't closed the storm shutters yet.

varjag1y ago

LOL IPO market is dead for observable future.

j / k navigate · click thread line to collapse