Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has been unsuccessful, marking what would have been the company’s largest acquisition. Wiz’s CEO, Assaf Rappaport, stated the decision to decline was challenging, as the company aims to grow its revenues to $1 billion annually and pursue an initial public offering.
This acquisition would have enhanced Google’s cybersecurity capabilities, particularly following a significant outage in the cybersecurity sector caused by CrowdStrike last week. Analyst Dan Ives from Wedbush noted that concerns related to investors and ongoing antitrust issues contributed to the deal’s collapse. Google has faced considerable antitrust scrutiny and recently completed a trial concerning one of the two major cases against it by the Department of Justice.
Ives pointed out that the fallout from this unsuccessful deal could have broad implications across the tech industry. He expects Google to continue expanding its cybersecurity offerings, a movement that could be mirrored by Microsoft.
The recent CrowdStrike incident, which stemmed from a problematic update to its cybersecurity software, put Microsoft under negative scrutiny as users globally experienced system failures. Despite Ives referring to CrowdStrike as the “gold standard” in cybersecurity, the outage indicates that Microsoft may need to strengthen its cybersecurity efforts, especially with the missed opportunity to acquire Wiz now behind them.