Google’s plan for a significant acquisition has been thwarted, impacting the technology industry, particularly Microsoft. The tech giant aimed to purchase Israeli cybersecurity startup Wiz for $23 billion, but Wiz rejected the offer, as confirmed by CEO Assaf Rappaport. He described the decision as “tough” but necessary to focus on increasing Wiz’s revenue to $1 billion annually and preparing for an initial public offering (IPO).
This acquisition would have strengthened Google’s cybersecurity capabilities, especially following a major outage linked to CrowdStrike that affected the cybersecurity landscape. Analyst Dan Ives from Wedbush noted that investor apprehensions and antitrust challenges contributed to the deal’s collapse. Google has faced significant antitrust scrutiny and recently concluded a major trial related to these issues.
Ives suggested that the cancellation of the acquisition will have far-reaching effects throughout the industry. Despite this setback, he believes Google will intensify its efforts to expand its cybersecurity services. Microsoft is expected to follow suit, as the ongoing demand for consolidation in the cybersecurity sector becomes apparent.
The company recently encountered negative attention due to a significant global IT outage caused by a problematic update of CrowdStrike’s software. This incident disrupted various operations globally, leading to reports of critical system failures. Although Ives maintains that CrowdStrike is a leading figure in cybersecurity, the outage underscores the need for Microsoft to strengthen its cybersecurity framework, making Google’s failed acquisition of Wiz a potential opportunity for further growth in this sector.