Google’s attempt to acquire Israeli cybersecurity firm Wiz for $23 billion has officially fallen through, marking a significant moment for the tech industry, particularly impacting Microsoft. Wiz CEO Assaf Rappaport made the difficult choice to decline the offer, opting instead to focus on expanding the company towards reaching $1 billion in annual revenue and eventually pursuing an initial public offering.
The potential acquisition would have strengthened Google’s cybersecurity portfolio, especially following a recent major incident involving CrowdStrike that caused widespread disruption in the cybersecurity realm. According to Wedbush analyst Dan Ives, concerns from investors and ongoing antitrust issues faced by Google were pivotal in thwarting the deal. Google has been under intense scrutiny regarding its business practices and recently concluded a major antitrust trial led by the Department of Justice.
Ives indicated that the failure of this acquisition could have ripple effects across the cybersecurity sector. He suggested that Google would likely amplify its efforts in cybersecurity despite the cancellation of the Wiz deal, a sentiment shared by its competitor Microsoft.
Ives noted that consolidation within the cybersecurity space is overdue, predicting that Microsoft may take steps to enhance its own cybersecurity platform within the next 12 to 18 months. This comes in light of a recent incident where a faulty update to CrowdStrike’s cybersecurity software led to a global IT outage, negatively impacting Microsoft. Users worldwide experienced system failures, showcasing the pressing need for stronger cybersecurity measures.
Despite Ives’ designation of CrowdStrike as the “gold standard” in cybersecurity, the recent outage raises questions about the robustness of Microsoft’s cybersecurity strategy, presenting an opportunity for growth, especially with Google’s abandoned acquisition of Wiz.