Google’s pursuit of Israeli cybersecurity startup Wiz for $23 billion has officially ended as Wiz has declined the offer. The company’s CEO, Assaf Rappaport, stated that this difficult decision was made to focus on building Wiz towards an annual revenue goal of $1 billion and preparing for an eventual IPO.
This acquisition would have significantly enhanced Google’s cybersecurity capabilities, especially following a major service disruption caused by CrowdStrike, a key player in the cybersecurity industry, just last week. Analyst Dan Ives from Wedbush explained that concerns about investor reactions and ongoing antitrust issues have hindered the deal. Google has faced significant antitrust scrutiny in recent years and recently concluded one of its major legal battles with the Department of Justice.
Ives noted that the failed acquisition could have broader repercussions across the tech sector. He anticipates that Google will intensify its efforts to expand its cybersecurity services, and he expects Microsoft to follow suit in strengthening its cybersecurity infrastructure in the next year to year and a half.
The recent global IT outage linked to a faulty update from CrowdStrike, which used Microsoft’s technology to safeguard its operating systems, has raised questions about the reliability of existing cybersecurity measures. While Ives asserts that CrowdStrike remains a leading name in cybersecurity, the incident suggests an urgent need for both Microsoft and Google to enhance their cybersecurity initiatives in light of the increasing threats in the industry.