Google’s attempt to acquire Israeli cybersecurity firm Wiz for $23 billion has come to an end, marking a significant development in the tech industry, particularly for Microsoft.
Wiz’s CEO, Assaf Rappaport, announced on Tuesday that the company declined Google’s substantial offer. He specified that the decision, while challenging, was aimed at focusing on growing Wiz towards achieving $1 billion in annual revenue and preparing for an initial public offering (IPO).
This acquisition would have enhanced Google’s cybersecurity capabilities following a major disruption last week caused by industry leader CrowdStrike. Analyst Dan Ives from Wedbush noted that investor apprehensions and antitrust issues were pivotal in the deal’s collapse. Google has faced intense antitrust scrutiny in recent years, culminating in its current trial regarding two significant cases instigated by the Department of Justice.
Ives indicated that the failure of the acquisition would have broader implications for the cybersecurity sector. He suggested that Google would likely intensify its efforts to expand its cybersecurity presence despite the loss of the Wiz deal, a path that Microsoft may also pursue.
Considering the recent global IT outage linked to a problematic update of CrowdStrike’s cybersecurity software, which affected Microsoft’s Windows systems, Ives suggested that there may be a pressing need for Microsoft to enhance its cybersecurity offerings. The failure of the acquisition is expected to further encourage Microsoft to strengthen its cybersecurity platform in the next 12 to 18 months.