Google’s attempt to acquire Israeli cybersecurity firm Wiz for $23 billion has come to an end, a decision that is expected to have significant repercussions for the technology sector, particularly for Microsoft.
Wiz CEO Assaf Rappaport announced on Tuesday that the company has rejected Google’s offer, stating that the decision was difficult but necessary to focus on achieving $1 billion in annual revenue and preparing for an IPO.
This acquisition would have strengthened Google’s position in the cybersecurity market, especially following a recent major outage linked to CrowdStrike, a leading industry player. Wedbush analyst Dan Ives suggested that concerns from investors and antitrust issues contributed to the collapse of the deal. Google has been under intense scrutiny regarding antitrust matters, recently concluding its trial related to a major Department of Justice case.
Ives highlighted that the failure of this acquisition will likely create ripple effects across the sector. He noted that Google is expected to continue enhancing its cybersecurity capabilities, a move that Microsoft may also pursue in response to the changing landscape.
Ives anticipates that Microsoft, recently faced with criticism due to a widespread IT outage related to a faulty update in its cybersecurity software from CrowdStrike, will need to strengthen its cybersecurity offerings in the coming year or two. Despite the outage, which disrupted numerous business operations and government functions, Ives insists that CrowdStrike remains a leader in the field. However, the situation underscores the need for Microsoft to bolster its cybersecurity efforts, especially in light of the failed Wiz acquisition.