Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has come to an end, and this decision could have significant repercussions for the tech industry, particularly for Microsoft.
Wiz CEO Assaf Rappaport announced the rejection of Google’s offer, indicating it was a difficult choice made to maintain the company’s focus on achieving $1 billion in annual revenue and pursuing an initial public offering (IPO). This acquisition would have strengthened Google’s cybersecurity sector following a recent major outage caused by CrowdStrike, a key player in the cybersecurity field.
According to Wedbush analyst Dan Ives, investor apprehensions and ongoing antitrust scrutiny surrounding Google contributed to the collapse of the deal. Google has been under heavy investigation from regulatory bodies and has recently concluded a trial related to one of two significant cases brought by the Department of Justice.
Ives mentioned that the failure of this acquisition might have broader effects across the tech sector but believes Google will persist in expanding its cybersecurity capabilities regardless. He suggested that Microsoft may also be looking for ways to enhance its cybersecurity operations in response to these developments.
The situation became particularly pressing for Microsoft after a widespread global IT outage linked to a problematic update to its cybersecurity software from CrowdStrike. This incident garnered negative attention for Microsoft, as users reported system failures that affected businesses and services worldwide.
While Ives reaffirmed that CrowdStrike remains a key player in the cybersecurity arena, the outage could serve as a catalyst for Microsoft to strengthen its cybersecurity offerings, especially with Google’s failed acquisition of Wiz now leaving more opportunities open.