Google’s proposed acquisition of the Israeli cybersecurity startup Wiz for $23 billion has fallen through, significantly impacting the tech industry, especially Microsoft. Wiz’s CEO, Assaf Rappaport, decided to decline Google’s substantial offer to focus on increasing the company’s revenue to $1 billion annually and pursuing an initial public offering.
The potential acquisition was intended to enhance Google’s cybersecurity services shortly after a major outage caused by CrowdStrike, a significant player in the industry, raised concerns. According to Wedbush analyst Dan Ives, the deal’s collapse was influenced by investor apprehensions and ongoing antitrust issues faced by Google, which has been under intense scrutiny and recently concluded a trial related to a major case from the Department of Justice.
Ives noted that the failed acquisition would have far-reaching effects across the tech sector and expressed that Google is likely to continue expanding its cybersecurity efforts despite the setback. Similarly, Microsoft is expected to enhance its own cybersecurity capabilities in response to the current market demands.
The situation took a turn for Microsoft recently when it faced backlash during a global IT outage caused by a flawed update to CrowdStrike’s cybersecurity software. This incident drew significant attention, highlighting vulnerabilities in Microsoft’s systems as users encountered critical performance issues. Ives emphasized that while CrowdStrike remains a leader in cybersecurity, the outage has underscored the need for Microsoft to strengthen its cybersecurity initiatives further amid the industry’s evolving landscape.