Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has come to an end as Wiz has officially rejected the offer. This decision, announced by Wiz CEO Assaf Rappaport, allows the company to focus on its goal of reaching $1 billion in annual revenue and preparing for an initial public offering (IPO).
The potential acquisition would have significantly strengthened Google’s cybersecurity division, particularly in light of a recent widespread outage caused by CrowdStrike, a major player in the field. Analysts, including Wedbush’s Dan Ives, indicated that investor concerns and ongoing antitrust investigations contributed to the deal’s collapse. Google has been under intense scrutiny from regulators and has recently finished a trial regarding one of the two major cases brought against it by the Department of Justice.
Ives pointed out that the failure to finalize the agreement will have implications for the broader tech sector. He anticipates that Google will intensify its efforts to expand its cybersecurity capabilities, a path that Microsoft is also expected to pursue in light of its own challenges in this space.
The recent CrowdStrike outage, which stemmed from a faulty software update and disrupted operations globally, has put Microsoft in a difficult spotlight. Users reported issues like the infamous “blue screens of death,” affecting businesses and government functions worldwide. Given this incident and the competitive landscape, there are expectations that Microsoft may seek to enhance its cybersecurity offerings in the next year to 18 months, especially following Google’s unsuccessful bid for Wiz.