Google’s potential acquisition of the Israeli cybersecurity startup Wiz for $23 billion has fallen through, a development that could have significant implications for the tech industry, particularly for Microsoft.
Wiz’s CEO, Assaf Rappaport, announced on Tuesday that the company had rejected Google’s offer, describing the decision as “tough.” Rappaport emphasized the company’s commitment to growing Wiz’s revenue to $1 billion annually and planning for an initial public offering (IPO). This move would have enhanced Google’s cybersecurity capabilities, especially in light of recent disruptions caused by a major outage from CrowdStrike, a significant player in the cybersecurity field.
Wedbush analyst Dan Ives highlighted that the concerns from investors and ongoing antitrust issues surrounding Google contributed to the deal’s collapse. Google has faced intense scrutiny over its business practices, recently concluding a trial related to one of two significant cases brought by the Department of Justice.
Ives noted that the failure of the deal is likely to create ripple effects across the cybersecurity sector. He believes Google will continue to aggressively expand its cybersecurity initiatives despite losing the opportunity with Wiz. Microsoft is also expected to reassess its cybersecurity strategy in the wake of these developments.
The spotlight turned to Microsoft during the recent global IT outage resulting from a problematic update to CrowdStrike’s software. This incident raised concerns among users, many of whom experienced critical failures on their systems. While Ives maintains that CrowdStrike remains a leading cybersecurity option, the outage underscores the necessity for Microsoft to strengthen its own cybersecurity offerings, making Google’s unfulfilled acquisition even more relevant.