Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has fallen through, a decision that will have significant repercussions for the technology sector, particularly for Microsoft. Wiz CEO Assaf Rappaport announced the tough choice to reject the offer, stating the company’s goal to grow towards $1 billion in annual revenue and eventually launch an IPO.
The acquisition would have strengthened Google’s cybersecurity division in the wake of a major outage caused by CrowdStrike, a prominent player in the industry, which occurred last week. Wedbush analyst Dan Ives suggested that investor apprehensions and ongoing antitrust challenges contributed to the failure of the deal. Google has faced heightened antitrust scrutiny and recently concluded a trial related to one of two major cases brought by the Department of Justice.
Ives remarked that the collapse of the deal could have ripple effects throughout the industry, predicting that Google would continue to focus on expanding its cybersecurity capabilities. He also noted that its competitor, Microsoft, would likely pursue similar strategies for growth in this area.
In light of the widespread disruption caused by a public issue related to a faulty update from CrowdStrike, Microsoft has come under scrutiny regarding its cybersecurity measures. The update, which was expected to enhance security, instead led to significant technical issues, affecting businesses and services globally.
While Ives maintains that CrowdStrike remains a leading name in cybersecurity, the recent outage highlights a potential need for Microsoft to enhance its cybersecurity offerings, with the failed Wiz acquisition further opening opportunities for such development.