Google’s ambition to acquire Israeli cybersecurity startup Wiz for $23 billion has come to an end, significantly affecting the tech industry, particularly Microsoft. Wiz CEO Assaf Rappaport announced the decision to reject Google’s substantial offer, emphasizing the company’s goal of reaching $1 billion in annual revenue and preparing for an initial public offering (IPO).
Had the acquisition gone through, it would have strengthened Google’s position in the cybersecurity domain, especially following a significant outage experienced by CrowdStrike, a major player in the cybersecurity field, just days earlier. According to Wedbush analyst Dan Ives, the deal’s collapse was largely influenced by investor concerns and ongoing antitrust scrutiny facing Google.
Ives noted that the failure of this deal will likely have broader implications across the sector. He suggested that Google will persist in expanding its cybersecurity initiatives despite the setback, a course that may also be pursued by Microsoft.
Ives remarked that consolidation within the cybersecurity sector is overdue, hinting that Microsoft may seek to enhance its cybersecurity offerings in the next year and a half. The timing of this speculation is particularly relevant given a recent global IT outage linked to a problematic update from CrowdStrike that affected Microsoft systems worldwide, causing significant disruptions.
Despite the challenges faced, Ives maintains that CrowdStrike remains a leading figure in cybersecurity, although the incident may prompt Microsoft to further strengthen its cybersecurity capabilities. The fallout from Google’s unsuccessful acquisition of Wiz only adds to the push for advancements in this crucial industry.