Google’s pursuit of acquiring Israeli cybersecurity startup Wiz for $23 billion has come to an end, marking a significant turning point for the tech industry, particularly for Microsoft. Wiz’s CEO, Assaf Rappaport, announced the company’s decision to reject Google’s offer, citing a focus on achieving $1 billion in annual revenue and preparing for an initial public offering (IPO) as the driving factors behind this tough choice.
This acquisition could have strengthened Google’s cybersecurity efforts, particularly following a major disruption in the sector caused by CrowdStrike, another industry leader, just last week. Analyst Dan Ives from Wedbush noted that the breakdown of this deal raises concerns among investors and is indicative of ongoing antitrust issues facing Google, which recently concluded one of its critical trials initiated by the Department of Justice.
Ives commented that the collapse of the deal will have widespread effects across the cybersecurity sector. He suggested that Google would likely intensify its efforts to expand its cybersecurity offerings despite the loss of the Wiz acquisition. Additionally, he indicated that Microsoft may also seek to enhance its cybersecurity capabilities in the next year to 18 months.
This comes at a time when Microsoft is under scrutiny following a significant global IT outage linked to a flawed update from CrowdStrike, which had severe repercussions for users worldwide, including system failures and disruptions in various industries. While Ives maintains that CrowdStrike is still a leading provider in cybersecurity, the incident underscores the necessity for Microsoft to strengthen its security measures, providing further motivation in light of Google’s failed acquisition attempt.