Why Wiz Walked Away: Inside the Billion-Dollar Acquisition Drama

Name: Why Wiz Walked Away: Inside the Billion-Dollar Acquisition Drama
Uploaded: 2024-08-10T10:04:26+00:00
Duration: 55 s
Channel: Jason M. Lemkin
Description: Jason M. Lemkin breaks down why Wiz rejected a $22-23 billion acquisition offer in just 48 hours of negotiation. The cloud-security startup's founders…

10 Aug 2024 · 1 min

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Jason M. Lemkin breaks down why Wiz rejected a $22-23 billion acquisition offer in just 48 hours of negotiation. The cloud-security startup's founders, already profitable with eight-figure revenues, chose an IPO over the deal's uncertainty.

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So do you believe that Wiz walked away because they did not think that it would go through? Because they felt— that's the number one. I think the offer was real, like in the press. I think Thomas Coriam called them up. I think they had a quick— he probably offered $10 billion. There was a quick back and forth and it quickly became 2x the last round. Right. I mean, literally when I sold my first startup, the acquirer went, got our certificate of incorporation in Delaware and offered us 3x last round before we even met. He's like, this is the clearing price, 3x your last round. So they offered it before the first meeting. Okay. So that took like 48 hours because you have to offer less or you look like He's, he's not the CEO of Google, he's just running Google Cloud. They offer $22 billion, $23 billion, and it's interesting, they talk about it with the team, and then this was over in a week and a half, I think, because it, it wasn't worth the risk. I don't think it was worth the risk. I don't think it was worth the risk, not for founders that are already wanted to go IPO with the growth they've had, and guys that have already made 8 figures. It wasn't worth the risk. I think it was a quick no. I think it was actually a quick no is what I think happened.