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Google-Wiz deal fizzles out, company will pursue IPO

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Re: Google-Wiz deal fizzles out, company will pursue IPO

#131

Post by thriftwy »

sofixa wrote: post #113
thriftwy wrote: post #93

Earlier quoted context omitted.

These numbers sound like a complete out of world fantasy to me. CRWD has a product that the user is not going to notice, best case. Now you said Wiz doesn't even have that one (what does it have then?) And their valuation is on par with the whole annually Western support of Ukraine. A country at war and with 30M people in it. That for some completely invisible product. It is also 17 millions of these most expensive b…

Crowdstrike does endpoint security (user's PCs and servers too for checkbox ticking reasons). Wiz does cloud security. The same thing as Crowdstrike, but runs in your cloud environment (AWS/GCP/Azure) to detect issues there. Different customers, different profiles, different costs and prices.

I just don't see why that should have $23B market cap as opposed to $230M. A small team can challenge them with similar product.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#132

Post by pjc50 »

kuzmanov wrote: post #22
ds wrote: post #7

Far more likely is Google was not willing to complete the deal and was pulling the plug after looking at internal data. Wiz, fearing the bad press of Google backing out rushes to tell journalists that THEY are walking away because they are worth more. Wiz's valuation is insane. Most people havent even heard of them. I think it was a > 60x ARR multiple on this deal. Id actually be kinda pissed if I was a google shareh…

This is exactly how I felt as a shareholder. There is no real reason to pay this much and it seems like Google is the one that walked away from the deal.

Shareholder in Wiz, or Crowdstrike?

Re: Google-Wiz deal fizzles out, company will pursue IPO

#133

Post by golemiprague »

johnpython wrote: post #108
KoftaBob wrote: post #76

Fun fact: > Wiz was founded in January 2020 by Assaf Rappaport, Yinon Costica, Roy Reznik, and Ami Luttwak, all of whom previously founded Adallom > Adallom was founded in 2012 by Assaf Rappaport, Ami Luttwak and Roy Reznik, who are former members of the Israeli Intelligence Corps’ Unit 8200 https://en.wikipedia.org/wiki/Wiz_(company)

[flagged]

[dead]

Re: Google-Wiz deal fizzles out, company will pursue IPO

#134

Post by ajdhG »

mihaic wrote: post #110

Over a certain threshold, all software companies seem to degenerate into sales companies. Honestly, I'm just mildly shocked of the $23B valuation for a product that I'd expect to have taken waaay less than 1% of that in dev costs. What I'm more shocked is that Google decided they can't build the same thing themselves. Maybe I don't understand the complexity of the product?

I'm not shocked that Google cannot build things these days. There are of course good engineers in areas like the Linux kernel, Golang etc., but in other areas it is just show and politics.

One of the political teams was fired recently, so perhaps Google is in the process of reversing course, but that is just a guess.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#135

Post by stefan_ »

nshelly wrote: post #96
pwdisswordfishd wrote: post #77

Earlier quoted context omitted.

This sounds uselessly crippled, as it's not going to catch malware that doesn't drop anything to disk, or that adequately cleans up after itself if it does.

I would assume they could also dump memory, i.e. `/dev/mem`. Agreed they would need to also do frequent memory snapshots, but lots of malware will also run in the background waiting indefinitely, and often as the same name as common Linux processes but different hashes.

The people who have /dev/mem and run this garbage must form a complete overlapping circle.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#136

Post by trhway »

underdeserver wrote: post #125
trhway wrote: post #119

Israel's GDP is $500B+ . So Google's offer would bring 4%+ of one year's GDP into Israel. And these guys refused it. One can wonder what the government would think here :)

Thankfully, Israel is a free country and the government can't force you to sell.

Not necessarily force. Government can do a lot toward either direction - facilitating or blocking a deal. And when somebody comes with a boatload of money noticeable on the scale of your GDP, the government would hardly stay neutral. Just look at all the circus around Foxconn in Wisconsin for example and that is much smaller scale wrt. US GDP.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#137

Post by pjc50 »

thriftwy wrote: post #93
solatic wrote: post #81

Earlier quoted context omitted.

On the one hand, even with the post-crash dip, CRWD has a $60.9 billion market cap, there's certainly marketshare to be taken from them. On the other hand, Wiz doesn't have an endpoint protection product (which is what failed for CRWD). They'd have to build one from scratch, which requires dedicated talent (engineers with kernel experience) that they might not have. If anyone is going after CRWD it'll be one of their…

These numbers sound like a complete out of world fantasy to me. CRWD has a product that the user is not going to notice, best case. Now you said Wiz doesn't even have that one (what does it have then?) And their valuation is on par with the whole annually Western support of Ukraine. A country at war and with 30M people in it. That for some completely invisible product. It is also 17 millions of these most expensive b…

I think this is just a representation of where the money is in the world. Two things:

- stocks are called stocks for a reason, they're not flows. $60bn is effectively an estimate of all future profits of the company over its lifetime

- Crowdstrike generates a return by charging enterprises huge amounts of money to feel secure and tick security boxes (Actual security is questionable). Big enterprises have a lot of money to waste, but they feel they're getting a return on it

- hardly anyone outside Ukraine gets a specific return from backing Ukraine. The same goes for all sorts of other worthy projects of the "end world hunger" kind - there's huge benefits, but not to the people actually spending the money.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#138

Post by llm_trw »

qeternity wrote: post #120
llm_trw wrote: post #114

Earlier quoted context omitted.

That's 800 employees too much. The reason why tech sucks these days is because everyone over hires and empire builds.

Sales. They have huge ARR after a few short years because it’s a sales org with a few engineers scattered about.

So not a tech company. Fair enough.

Re: Google-Wiz deal fizzles out, company will pursue IPO

#139

Post by vinay_ys »

J_Shelby_J wrote: post #78
dilyevsky wrote: post #54

Earlier quoted context omitted.

I did look at their financials - 77% gross margin with 30% revenue growth. Much higher than “commodity cdn” can command. If they cut marketing and r&d they’d be bagging half a b a year in profit but they are investing in growth as they should because it’s working

Cloud flare will still be the internet in ten years, while Amazon will just be Walmart,

And, that's a dis, why?

Re: Google-Wiz deal fizzles out, company will pursue IPO

#140

Post by nar001 »

pjc50 wrote: post #132
kuzmanov wrote: post #22

Earlier quoted context omitted.

This is exactly how I felt as a shareholder. There is no real reason to pay this much and it seems like Google is the one that walked away from the deal.

Shareholder in Wiz, or Crowdstrike?

Google wasn't trying to buy Crowdstrike, so Wiz
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