Google’s plans for its largest acquisition have fallen through, which could significantly impact the technology sector, especially Microsoft. The company had aimed to acquire Israeli cybersecurity firm Wiz for $23 billion, but Wiz’s CEO, Assaf Rappaport, announced on Tuesday that they had declined the substantial offer. Rappaport emphasized the difficult decision was made to enable Wiz to pursue its goal of generating $1 billion in annual revenue and heading towards an IPO.
This acquisition would have strengthened Google’s cybersecurity division, especially after a recent major outage caused by CrowdStrike, an established player in the cybersecurity space. Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust issues were factors leading to the deal’s collapse. Google has faced considerable antitrust scrutiny in recent years and recently concluded a trial concerning one of two significant cases from the Department of Justice.
Ives pointed out that the failed acquisition could have wider repercussions in the industry. He believes that Google will persist in enhancing its cybersecurity efforts despite the setback with Wiz, and that Microsoft is also likely to pursue opportunities to strengthen its cybersecurity offerings in the next year or so.
Microsoft recently faced criticism following a widespread IT outage linked to a problematic update in CrowdStrike’s cybersecurity software. This incident saw Microsoft users experiencing significant disruptions, including the notorious “blue screens of death.” Despite Ives maintaining that CrowdStrike is still considered a leader in cybersecurity, the outage highlights the need for Microsoft to enhance its cybersecurity capabilities, an opportunity that Google’s failed acquisition now further emphasizes.