The Deal
In July 2024, Google offered approximately $23B to acquire Wiz, a cloud security startup that had reached $500M ARR in record time. The deal would have been Google largest acquisition ever. However, Wiz co-founder Assaf Rappaport ultimately rejected the offer, citing regulatory uncertainty and the company strong IPO prospects.
Strategic Rationale
Google Cloud needed security capabilities to compete with Azure and AWS. Wiz had become the fastest-growing security company in history, reaching $500M ARR in under four years. The acquisition would have instantly given Google Cloud a market-leading security platform and signaled aggressive investment in cloud growth.
Impact
The failed deal highlighted how regulatory uncertainty was killing large tech acquisitions. It also demonstrated that the best AI-era startups had enough momentum to reject even massive acquisition offers. Wiz rejection forced Google to pursue the deal again later at a higher price.
What Happened After
Wiz continued growing independently, reportedly exceeding $700M ARR. Google eventually successfully acquired Wiz in March 2025 for $32B, the largest acquisition in Google history. The initial failed attempt cost Google an additional $9B in purchase price, demonstrating the cost of regulatory-induced deal uncertainty.