Cisco was apparently very close to acquiring SentinelOne, but SentinelOne... "discovered a gap between the ARR it previously presented and the actual expected revenues. This discovery even led the company to change its ARR calculation method to reflect reality more accurately and also take into account scenarios of reduced usage of its solutions by customers."
Does this mean they were fudging the numbers a bit, got busted, and had to move to more honest calculations, or was it an honest mistake?
"Following the discovery, which required a retroactive revision of the financial statements and reduced $27 million from the company's ARR, Cisco withdrew from the negotiations, and SentinelOne returned to the market, but at a much lower value."
How much lower? Negotiations were reportedly in the $8-$9B range, but more realistically, would be looking at $6-7B after the ARR adjustment and subsequent 40% stock drop. On top of all this, SentinelOne laid off 5% of its workforce (~100 people). Following its IPO, SentinelOne traded as high as $20B, but now trades just under $5B.
"SentinelOne is currently working with the investment bank Catalyst Partners to find a new buyer, and Cisco could still return to the picture, this time at a reduced price."