Wiz has decided to ghost Google on a whopping $23 billion acquisition deal. Instead, the cybersecurity whiz kids are sticking to their original plan of going public.

“Turning down such a humbling offer isn’t easy,” wrote Wiz co-founder Assaf Rappaport in a memo to employees. But hey, why settle down when you can have a thrilling IPO adventure? After weighing potential antitrust hurdles and investor jitters, they decided the unpredictable dance of the stock market seemed like the safer bet. You know, because nothing says "safe" like the highs and lows of the stock market.

Wiz is now laser-focused on two major milestones: going public and hitting $1 billion in annual recurring revenue. This isn't a sudden pivot; the company has had its eyes on these targets long before Google came calling like a desperate ex.

Founded in 2020, Wiz rocketed to $100 million in annual recurring revenue in just 18 months, hitting $350 million last year. Their cloud security products—covering everything from prevention to active detection and response—made them the “hot woman at the bar” of big firms looking to beef up their defenses. Google was eyeing this hot portfolio to compete with Microsoft, because apparently, the cloud isn't big enough for the both of them.

Alphabet’s cloud segment, led by CEO Thomas Kurian, has been under intense pressure to keep growing amidst fierce competition from Microsoft and Amazon. Google Cloud finally reached profitability in 2023, but the push for more growth is relentless, especially with the AI boom in full swing.

This turn of events isn't just a bummer for Google. Venture capital heavyweights like Index Ventures, Insight Partners, and Sequoia, who have poured billions into Wiz, were probably dreaming of a hefty payday. According to Brendan Burke, a senior analyst at PitchBook, these funds need exits north of $10 billion to make their investors happy – and those have been about as common as unicorns this year.

Wiz’s founders are no strangers to big exits. Their previous startup, Adallom, was sold to Microsoft for $320 million in 2015. With a track record like that, it’s no wonder Sequoia’s Doug Leone called investing in Wiz a no-brainer. If only my investments were that obvious.

Google’s attempt to scoop up Wiz isn’t their first splash into cybersecurity. In 2022, they acquired Mandiant for $5.4 billion. Their largest deal to date remains the $12.5 billion acquisition of Motorola in 2012. However, they sold most of Motorola’s assets to Lenovo for a mere $2.9 billion in 2014. More recently, Google ended talks to acquire sales software maker HubSpot. It’s like they’re on a shopping spree but keep getting their credit card declined.

In a memorable CNBC interview last year, Assaf Rappaport chuckled when asked if he wanted to take Wiz public, responding with a confident “Yeah, definitely.” Because, really, who wouldn’t want to trade the stability of a $23 billion deal for the thrilling uncertainty of an IPO?

Stock.News has positions in Microsoft, Amazon, and Google.