Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has officially fallen through, marking what would have been its largest acquisition. This decision will have significant implications for the tech industry, particularly for Microsoft.
Wiz CEO Assaf Rappaport stated that the choice to decline Google’s substantial offer was a difficult one, made in favor of the company’s growth trajectory towards achieving $1 billion in annual revenue and preparing for an initial public offering (IPO).
The acquisition would have strengthened Google’s position in the cybersecurity sector, especially following a major outage last week caused by CrowdStrike, a prominent player in the industry. According to Wedbush analyst Dan Ives, the failure of the deal is attributed to investor apprehensions and antitrust challenges that have increasingly surrounded Google. The company recently concluded its trial related to a significant antitrust case brought by the Department of Justice.
Ives noted that the implications of this deal not going through would be felt across the cybersecurity field. He anticipates that Google will remain focused on expanding its presence in cybersecurity, a trend likely to be mirrored by Microsoft.
In light of the recent outage tied to CrowdStrike’s software, which affected numerous businesses and operations worldwide, there is speculation that Microsoft may also consider consolidating its cybersecurity capabilities over the next year and a half. Despite the incident, Ives emphasized that CrowdStrike still maintains its reputation as the leading cybersecurity provider, but he suggested that the recent failures highlight a need for Microsoft to enhance its cybersecurity measures.