Palo Alto Networks (PANW) Stock: Failed Okta and Datadog Bids Revealed Before CyberArk Acquisition

Key Takeaways

• Nikesh Arora, CEO of Palo Alto Networks, engaged in acquisition discussions with Okta spanning from late 2024 through early 2025, which ultimately collapsed due to pricing disputes.
• In spring 2025, Arora approached Datadog’s CEO Olivier Pomel with an acquisition proposal, but Pomel declined interest, resulting in no official bid.
• Following the failed negotiations, Palo Alto Networks completed a $25 billion CyberArk acquisition in July 2025 and a $3.35 billion Chronosphere purchase in January 2026.
• The CyberArk and Chronosphere acquisitions collectively added $338 million to Palo Alto’s $3 billion quarterly revenue reported in April.
• Current reports indicate Arora is considering Cribl, with a $3.5 billion valuation, and ClickHouse, valued at $15 billion, for potential future acquisitions.

New revelations indicate that Palo Alto Networks (PANW) CEO Nikesh Arora pursued acquisition negotiations with both Okta and Datadog, though neither materialized into formal deals, as reported by The Information on Wednesday.

Palo Alto Networks, Inc., PANW

Throughout the final months of 2024 and into the beginning of 2025, Arora conducted multiple meetings with Todd McKinnon, Okta’s chief executive. The discussions centered around potential product integration opportunities between the two companies, though negotiations ultimately broke down when the parties failed to agree on valuation terms.

At the beginning of 2024, Okta carried a market valuation of approximately $13.5 billion. Since that time, the company’s stock has appreciated by around 30%, pushing its current market capitalization to nearly $23 billion.

During the spring months of 2025, Arora initiated contact with Olivier Pomel, the CEO of Datadog, to explore a potential acquisition. Datadog’s public market valuation at that point exceeded $40 billion. However, Pomel showed no interest in entertaining the proposal, and Palo Alto never submitted a formal acquisition offer.

In the months that followed, Datadog’s valuation has experienced significant growth, approximately doubling to surpass $80 billion. Such a substantial price increase makes any prospective future transaction highly improbable.

Completed Acquisitions

After the Okta and Datadog negotiations failed to materialize, Palo Alto Networks pivoted its acquisition strategy. The company announced a $25 billion agreement to purchase CyberArk in July 2025. Subsequently, in January 2026, Palo Alto acquired Chronosphere for $3.35 billion, securing a log data and observability platform that directly competes with Datadog.

These two completed transactions generated a combined $338 million in revenue contribution to the $3 billion total that Palo Alto Networks disclosed for its April quarter earnings.

On Wednesday, Palo Alto stock declined 0.38%, closing at $338.60. Meanwhile, Datadog shares climbed 2.95% following the news, and Okta shares dropped 1.12%.

When contacted for comment, a Palo Alto Networks representative stated the company maintains a policy against addressing “rumors or speculation.” Representatives from both Datadog and Okta declined to provide statements.

Future Acquisition Targets

Arora’s acquisition strategy shows no signs of deceleration. Recent reports suggest he’s currently assessing companies that would complement the capabilities acquired through the Chronosphere transaction.

One potential target under consideration is Cribl, a data management platform company carrying a $3.5 billion valuation. Another company drawing attention is ClickHouse, a database technology firm that secured funding at a $15 billion valuation during January 2026.

Additionally, Arora is exploring potential transactions within the artificial intelligence security sector. The strategic rationale centers on the evolving threat landscape where AI-powered tools are transforming cyberattack methodologies, elevating the importance of real-time monitoring solutions for enterprise clients.

Shares of Chronosphere, which operates under the CHRN ticker symbol, decreased 4.64% on Wednesday.

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