Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has come to an abrupt end, with Wiz rejecting the offer. CEO Assaf Rappaport described the decision as “tough,” emphasizing the company’s aim to focus on generating $1 billion in annual revenue and preparing for an eventual IPO.
This acquisition was seen as a crucial move for Google to enhance its cybersecurity capabilities, especially in light of the recent significant outage from industry player CrowdStrike, which raised concerns across the sector. According to Wedbush analyst Dan Ives, the failure of this deal reflects investor apprehensions and ongoing antitrust issues facing Google, which has recently concluded a major trial with the Department of Justice.
Ives noted that the collapse of the acquisition could have broader implications for the technology industry. He anticipates that Google will intensify its efforts to expand its presence in the cybersecurity market, a sentiment shared by its competitor Microsoft.
Ives also believes that the cybersecurity sector is due for consolidation and expects Microsoft to take steps to enhance its cybersecurity platform within the next 12 to 18 months. The company faced scrutiny recently when a serious global IT outage was linked to a faulty update of cybersecurity software from CrowdStrike, underscoring the need for Microsoft to potentially strengthen its cybersecurity measures.