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Why did Wiz reject $23B from Google and how did they get $32B?
Wiz rejected Google's $23B acquisition offer in 2024 by announcing credible IPO plans. Nine months later, Google returned with a $32B offer. 38% higher. and Wiz accepted. The IPO path wasn't the goal. It was the negotiating lever. By creating a real walk-away option, Wiz forced Google to price the r
Context: A founder in or approaching an acquisition process, trying to understand how to build leverage and extract a higher price from a buyer.
Wiz rejected Google's $23B acquisition offer in 2024 by announcing credible IPO plans. Nine months later, Google returned with a $32B offer. 38% higher. and Wiz accepted. The IPO path wasn't the goal. It was the negotiating lever. By creating a real walk-away option, Wiz forced Google to price the risk of losing the deal entirely.
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The Full Story
In summer 2024, Google made an offer to acquire Wiz, the cloud security company, for $23 billion. At the time, Wiz had hit $100M ARR in 18 months. one of the fastest software growth rates on record. The founders said no and publicly announced they were targeting an IPO instead.
Most people read that as ambition. It was actually strategy.
The Wiz founders (Assaf Rappaport, Roy Reznik, Yinon Costica, Ami Luttwak) had done this before. Their previous company, Adallom, was acquired by Microsoft for $320M in 2015. They understood acquisition process dynamics.
When Wiz turned down $23B, they weren't gambling. They were manufacturing leverage. The credible IPO path made Google's next move binary: either come back at a number that made the deal undeniable, or watch Wiz go public and lose access to the company permanently.
Google came back. March 11, 2026: $32B all-cash. A $3.2B reverse break fee included. Google's insurance against regulatory risk.
The deal closed. Wiz became the largest cybersecurity acquisition in history.
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What founders can learn from this
1. The first offer is usually not the best offer. but only if you have a real alternative.
2. The alternative has to be credible. A fake IPO threat doesn't work. A funded IPO roadmap does.
3. Leverage disappears the moment the buyer believes you need the deal more than they do.
4. Serial founders negotiate better because they've seen how acquisition timelines actually work. First-time founders often interpret urgency signals wrong and close too fast.
Most M&A processes give buyers more information and more time than sellers. The exception is when the seller has a real competing option. That's when the leverage inverts.
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Related Questions
- How do you negotiate an acquisition offer as a founder?
- What is a reverse break fee in an acquisition?
- Should I pursue an IPO or acquisition for my company?
- How do I know if I'm getting a fair acquisition offer?
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Ask ExitBoard
Evaluating an acquisition offer? The ExitBoard Founder Clarity Session is built for this exact scenario. Book a session to get independent advisory on your exit options before you respond to any offer.
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