Key Takeaways
- Between late 2024 and early 2025, Palo Alto Networks CEO Nikesh Arora engaged in acquisition discussions with Okta, but negotiations collapsed due to pricing disputes.
- In spring 2025, Arora approached Datadog’s CEO Olivier Pomel about a potential acquisition, but Pomel declined and no official bid was presented.
- After these unsuccessful attempts, Palo Alto Networks completed the $25 billion CyberArk acquisition in July 2025 and the $3.35 billion Chronosphere purchase in January 2026.
- The CyberArk and Chronosphere acquisitions together added $338 million to Palo Alto’s $3 billion quarterly revenue reported in April.
- Current reports indicate Arora is evaluating Cribl (valued at $3.5 billion) and ClickHouse (valued at $15 billion) as prospective acquisition candidates.
Nikesh Arora, CEO of Palo Alto Networks (PANW), pursued acquisition conversations with both Okta and Datadog before those negotiations ultimately collapsed, The Information reported on Wednesday.
Palo Alto Networks, Inc., PANW
During the period spanning late 2024 through early 2025, Arora conducted multiple meetings with Todd McKinnon, CEO of Okta. Both organizations explored potential product integration opportunities, though discussions eventually reached an impasse due to valuation differences.
Okta carried a valuation of approximately $13.5 billion when last year began. The company’s value has subsequently climbed about 30%, bringing its current market capitalization close to $23 billion.
During the spring of 2025, Arora reached out to Olivier Pomel, Datadog’s CEO, to explore a potential transaction. Datadog’s public market valuation stood above $40 billion at that point. Pomel rejected the overture, and Palo Alto never submitted a formal acquisition proposal.
Datadog’s market capitalization has since expanded to exceed $80 billionāapproximately double its previous value. Such a substantial price increase makes any prospective acquisition highly improbable going forward.
Completed Acquisitions
After Okta and Datadog became unavailable targets, Palo Alto Networks pursued alternative strategic opportunities. The company finalized a $25 billion agreement to acquire CyberArk in July 2025. Subsequently, in January 2026, Palo Alto purchased Chronosphere for $3.35 billionāa log data and observability platform positioned as a Datadog competitor.
The combined impact of both acquisitions resulted in $338 million of Palo Alto’s $3 billion revenue total during the April reporting period.
Palo Alto stock declined 0.38% on Wednesday, closing at $338.60. Meanwhile, Datadog shares climbed 2.95% following the disclosure, while Okta shares dropped 1.12%.
A Palo Alto Networks representative stated the organization does not address “rumors or speculation.” Representatives from both Datadog and Okta declined to provide statements.
Future Acquisition Targets Under Consideration
Arora’s mergers and acquisitions activity shows no signs of deceleration. Reports suggest he is currently assessing organizations that would enhance Chronosphere’s existing functionality.
Cribl, a data management technology company with a $3.5 billion valuation, has emerged as a potential target. ClickHouse, a database enterprise that secured funding at a $15 billion valuation in January 2026, represents another candidate under consideration.
Additionally, Arora is reportedly exploring opportunities within the AI security sector. The rationale centers on how artificial intelligence technologies are transforming cyberattack methodologies, elevating the importance of continuous enterprise monitoring capabilities.
Chronosphere, which operates under the ticker symbol CHRN, experienced a 4.64% decline on Wednesday.
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