Zscaler CEO, Chairman and Founder Jay Chaudhry firmly denied rumors that the cloud security company is entertaining acquisition offers from Broadcom, in a LinkedIn post on Wednesday.
"I want to set the record straight that neither I nor the Zscaler board of directors are seeking or entertaining any offers to acquire Zscaler. Any reports stating otherwise are untrue," Chaudhry wrote. The rumours appear to have originated from a week-old anonymous Substack post claiming Broadcom had made a $38 billion offer for Zscaler.
Chaudhry emphasised Zscaler's strong position in the rapidly growing zero-trust security market. "Zscaler is at the forefront of a major technology disruption, and I believe that we are in an excellent position to lead the future of zero trust security," he said.
The CEO directed investors to Zscaler's official channels, including its website, investor relations site, blog, press releases, SEC filings, and social media, for any material information about the company going forward.
Zscaler, founded in 2007, is a leading provider of cloud-based security solutions. Its Zero Trust Exchange platform helps enterprises securely connect users, devices and applications using zero trust principles. In recent months, Zscaler has made strategic acquisitions to expand its zero trust capabilities, including Airgap Networks for agentless network segmentation and Avalor for AI-powered data protection.
The company reported revenues of $525 million and a net loss of $28.5 million in its most recent quarter. It is slated to announce Q3 fiscal 2024 earnings on May 30. Zscaler's stock price was unaffected in after-hours trading following Chaudhry's statement, as markets were closed for the Memorial Day holiday.
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