Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has fallen through, a decision that will have significant repercussions in the tech sector, especially for Microsoft. Wiz’s CEO, Assaf Rappaport, announced the rejection of the offer, emphasizing the desire to focus on growing Wiz toward achieving $1 billion in annual revenue and preparing for an eventual IPO.
This development comes on the heels of a substantial cybersecurity incident involving CrowdStrike, which disrupted various sectors, underscoring the importance of robust cybersecurity measures. According to Wedbush analyst Dan Ives, concerns from investors and ongoing antitrust investigations contributed to the collapse of the deal. Google has faced heightened scrutiny from regulators and recently concluded one of two major antitrust trials initiated by the Department of Justice.
Ives indicated that the fallout from this deal’s failure will likely have ripple effects across the industry. Despite the setback with Wiz, he believes Google will persist in expanding its cybersecurity capabilities, a trend expected to continue with Microsoft as well.
Ives noted that consolidation in the cybersecurity field is overdue and anticipates that Microsoft may pursue acquisitions to strengthen its cybersecurity platform within the next year to 18 months. The recent CrowdStrike outage, which caused widespread issues across multiple sectors, highlighted challenges facing Microsoft, further indicating a need for enhancement in its cybersecurity offerings.