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Google to buy Wiz for $32B

reuters.com

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Re: Google to buy Wiz for $32B

#571

Post by FuriouslyAdrift »

otterley wrote: post #367
FuriouslyAdrift wrote: post #362

Earlier quoted context omitted.

Many Jews do not practice Judaism. Being Jewish is an ethnicity. Source: am Jewish, not religeous.

> Source: am Jewish, not religeous [sic]. Me too, but a lot of (admittedly not all) opposition to Israel's existence, extent, and its security apparatus is rooted in anti-semitism. I'm not going to undertake a long discussion about it, but in short, you can hear the dog whistles and they're inappropriate.

Of course... one side of my family goes way way back in the area. Great grandma was Irgun. Rest of the fam was Austro-Hungarian/Ottoman/Polish/Ukrainian/Russian depending on what decade you looked at. Empires borders kept moving. I think at one point we might even had been Italian (Trieste).

Re: Google to buy Wiz for $32B

#572

Post by tasuki »

marcus0x62 wrote: post #350
majestik wrote: post #318

This deal isn't about security, it's about data. Google already have one of the best security teams in the industry - Project Zero [0]. They don't need Wiz's "enterprise" expertise for security. This deal is about DATA. Wiz, as a cybersecurity vendor, have full remote access to their customers cloud compute storage (EC2 EBS volumes, etc) in the name of "security scanning" - this is actually part of their unique selli…

Google isn’t buying Wiz for “security expertise”, they’re buying Wiz for a security product, in a growth area, that customers absolutely love. You’ve provided no evidence for the conspiracy theory that google is buying Wiz to siphon up a bunch of data, and if you’re going to link to Wiz, maybe link to their public list of security certifications, many of which prohibit the type of data harvesting you are suggesting.…

"Trust" screams insecurity. Security is in the direction of trustless rather than requiring trust. Do you trust companies which say front and center "you can trust us"?

Wiz is a "security product"? Security isn't something you can buy and bolt on to your systems as an afterthought. It doesn't work like that!

Re: Google to buy Wiz for $32B

#573

Post by marcus0x62 »

tasuki wrote: post #572
marcus0x62 wrote: post #350

Earlier quoted context omitted.

Google isn’t buying Wiz for “security expertise”, they’re buying Wiz for a security product, in a growth area, that customers absolutely love. You’ve provided no evidence for the conspiracy theory that google is buying Wiz to siphon up a bunch of data, and if you’re going to link to Wiz, maybe link to their public list of security certifications, many of which prohibit the type of data harvesting you are suggesting.…

"Trust" screams insecurity. Security is in the direction of trustless rather than requiring trust. Do you trust companies which say front and center "you can trust us"? Wiz is a "security product"? Security isn't something you can buy and bolt on to your systems as an afterthought. It doesn't work like that!

I’m honestly not sure what your point, if any, is.

Re: Google to buy Wiz for $32B

#574

Post by FuriouslyAdrift »

reliabilityguy wrote: post #415
FuriouslyAdrift wrote: post #362

Earlier quoted context omitted.

Many Jews do not practice Judaism. Being Jewish is an ethnicity. Source: am Jewish, not religeous.

Judaism is not only religion in a sense that you go to synagogue to pray. Being a jew is not only about religion but also about traditions, e.g., celebrating jewish holidays, teaching your kids about history of your people, etc. If you do nothing jewish, then I would argue that you are not jewish in a cultural sense. You still would be a jew from a religious point of view (if your mom is jewish), but if you do nothin…

Had a Jewish wedding and secular divorce, a few rabbis in the family on fathers side, went to Synagogue for a decade or so, haven't gone in a few decades. Don't really keep to most of the traditions. I'm ethnically Jewish and a big chunk of the family is also culturally Jewish with a smaller bit also religiously Jewish. Oddly the Israeli part of the family isn't religious at all (atheist) but follows more of the traditions because they live in a Jewish nation.

Re: Google to buy Wiz for $32B

#575

Post by SushiHippie »

IshKebab wrote: post #232
quantumwannabe wrote: post #120

Earlier quoted context omitted.

Whatsapp when it was acquired cost $1/year (with a year long free trial) and had a billion users and 55 employees. They were printing money.

As far as I remember they didn't ever really collect that money though. I certainly never paid it. I'm not sure they ever even implemented payment on Android. Obviously hard to source this old stuff but I found an old Reddit comment that backs up my recollection: https://www.reddit.com/r/whatsapp/comments/xesw29/comment/io...

I'm fairly certain that I paid once for WhatsApp back in the day (on Android)

EDIT: just checked my payment history and in November 2013 I paid €0.89 for "One Year Service"

Re: Google to buy Wiz for $32B

#577

Post by encoderer »

dinobones wrote: post #433

This makes no sense. Assume 1,000 customers each generating $2m in ARR with contracts. That’s $2 billion. Assume generous 6x ARR valuation, that’s $12 billion. Where is this $20 billion premium coming from? How could the board approve this? How is this fair to shareholders? Heck, as a minor shareholder in GOOG, I don’t find this financially responsible at all. I can’t help but think sometimes these tech acquisitions…

6x arr is not a generous multiple for this size of business.

Re: Google to buy Wiz for $32B

#578

Post by qwertox »

majestik wrote: post #318

This deal isn't about security, it's about data. Google already have one of the best security teams in the industry - Project Zero [0]. They don't need Wiz's "enterprise" expertise for security. This deal is about DATA. Wiz, as a cybersecurity vendor, have full remote access to their customers cloud compute storage (EC2 EBS volumes, etc) in the name of "security scanning" - this is actually part of their unique selli…

Project Zero is about finding security issues, not about developing products to increase security.

Re: Google to buy Wiz for $32B

#579

Post by encoderer »

tgma wrote: post #460
Taek wrote: post #453

Earlier quoted context omitted.

How is 6x generous? Alphabet's P/E is 23. That means $2 billion rev implies $46b valuation (assuming high margins) These deals always have more than meets the eye. Google wouldn't acquire revenue at a fair market price just for revenue's sake - there's some reason they expect to get value beyond the revenue. That doesn't mean its nepotism. It could be that they think they can triple revenue per customer with some syn…

P/E is the earnings multiple, not revenue. Your assuming high margins is doing a lot of legwork here. Often untrue for growing startups.

It’s the growing part that increases the multiple.

Re: Google to buy Wiz for $32B

#580

Post by twakefield »

dinobones wrote: post #433

This makes no sense. Assume 1,000 customers each generating $2m in ARR with contracts. That’s $2 billion. Assume generous 6x ARR valuation, that’s $12 billion. Where is this $20 billion premium coming from? How could the board approve this? How is this fair to shareholders? Heck, as a minor shareholder in GOOG, I don’t find this financially responsible at all. I can’t help but think sometimes these tech acquisitions…

There is a correlation analysis in Jamin Ball's "Clouded Judgement" substack [1] which shows the correlation between next twelve month ("NTM") Revenue Multiples and Revenue Annual Growth Rates for public market tech / SaaS stocks.

The current Slope-Intercept is (NTM Revenue Multiple) = 36.677*(NTM Rev Growth Rate) + 2.0013. If Wiz is doubling revenue (100% Growth Rate) and they are at about $500M of revenue today [2], then the multiple according to that calculation is ~38.7 X Next Twelve Month Revenue ($1B) or $38.7B.

So, the price is in line with the market...or you could argue even a discount to it.

[1] https://cloudedjudgement.substack.com/p/clouded-judgement-31... [2] https://www.barrons.com/articles/google-stock-price-wiz-deal...

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