Google’s potential acquisition of Israeli cybersecurity startup Wiz for $23 billion has fallen through, a decision that could significantly impact the tech industry, particularly Microsoft. Wiz CEO Assaf Rappaport revealed that he made the difficult choice to decline Google’s offer in order to focus on the company’s growth towards achieving $1 billion in annual revenue and pursuing an initial public offering (IPO).
This acquisition was aimed at strengthening Google’s cybersecurity sector, especially following a major outage caused by CrowdStrike last week that rattled the cyber world. Wedbush analyst Dan Ives noted that concerns from investors and ongoing antitrust scrutiny played a role in the deal’s failure. Google has faced considerable antitrust challenges recently, including a trial concerning major cases brought by the Department of Justice.
Ives indicated that the cancellation of the deal would likely send ripples throughout the industry. He suggested that Google would continue to prioritize expanding its cybersecurity capabilities, a sentiment that is also expected from Microsoft, a key competitor in the sector.
Ives stated that there is a pressing need for consolidation within cybersecurity, and he anticipates that Microsoft may seek to enhance its cybersecurity platform in the next 12 to 18 months. This comes in the wake of a global IT outage linked to a faulty update in CrowdStrike’s cybersecurity software, which impacted Microsoft’s systems, leading to widespread disruptions in various sectors.
Despite acknowledging CrowdStrike’s status as a leader in cybersecurity, Ives noted that the recent outage may signal a need for Microsoft to improve its cybersecurity offerings, making Google’s failed acquisition even more pertinent in the evolving landscape.