The recent rejection of Google’s proposed $23 billion acquisition of Israeli cybersecurity startup Wiz is expected to have significant repercussions for the technology sector, particularly for Microsoft.
Wiz CEO Assaf Rappaport announced that the decision to turn down Google’s offer was a difficult one, as the startup aims to grow its revenue to $1 billion annually and eventually pursue an initial public offering. The acquisition would have enhanced Google’s cybersecurity division, especially following a major outage affecting the industry, caused by CrowdStrike.
According to Wedbush analyst Dan Ives, the collapse of the deal can be attributed to investor apprehension and ongoing antitrust issues surrounding Google. The company has faced intense scrutiny and recently concluded a trial related to these antitrust matters.
Ives indicated that the failed acquisition would result in substantial consequences across the cybersecurity landscape, noting that Google will likely remain focused on expanding its cybersecurity capabilities in spite of the setback. He suggested that Microsoft might also take this opportunity to enhance its own cybersecurity platform over the next year or so.
Microsoft found itself on the receiving end of criticism after a widespread global IT outage, stemming from a problematic update to CrowdStrike’s cybersecurity software. This incident disrupted businesses and government operations and was compounded by users encountering the notorious “blue screen of death.”
While Ives emphasized that CrowdStrike remains a top player in cybersecurity, the recent challenges may motivate Microsoft to strengthen its cybersecurity strategies, further highlighting the impact of Google’s failed acquisition on the competitive landscape.