Google’s attempt to secure a major acquisition has fallen through, which could have significant consequences for the tech sector, particularly for Microsoft. The tech giant had aimed to acquire the Israeli cybersecurity startup Wiz for $23 billion, but the offer was turned down on Tuesday. Wiz CEO Assaf Rappaport described the decision as “tough,” emphasizing the company’s focus on achieving $1 billion in annual revenue and pursuing an initial public offering (IPO).
This potential acquisition was meant to strengthen Google’s cybersecurity capabilities, especially following a recent disruptive outage caused by CrowdStrike, a key player in the market. Analyst Dan Ives from Wedbush noted that the deal’s collapse was influenced by investor concerns and ongoing antitrust issues surrounding Google, which recently completed one of two major trials initiated by the Department of Justice.
Ives indicated that the failed acquisition would create ripple effects throughout the industry. He predicted that Google would likely continue to expand its presence in cybersecurity, a trend that Microsoft may also follow.
Furthermore, the situation has put Microsoft in an uncomfortable light after users faced widespread issues due to a CrowdStrike update that led to a global IT outage. Reports of Microsoft’s systems displaying “blue screens of death” highlighted vulnerabilities across various sectors, including businesses and government operations.
Despite the recent setback, Ives maintains that CrowdStrike remains the “gold standard” in cybersecurity. However, he suggested that the incident underscores a growing need for Microsoft to enhance its cybersecurity offerings, and the failure of Google’s acquisition could pave the way for future developments in this area.