Google’s potential acquisition of Israeli cybersecurity startup Wiz for $23 billion has fallen through, marking a significant moment in the tech industry, particularly affecting Microsoft. Wiz CEO Assaf Rappaport made the challenging decision to reject Google’s offer, opting instead to focus on growing the company to achieve $1 billion in annual revenue and pursue an IPO.
This acquisition would have strengthened Google’s cybersecurity assets following a major outage caused by industry leader CrowdStrike last week. Wedbush analyst Dan Ives noted that antitrust concerns and investor anxieties played a role in the failed deal. Google has faced increasing antitrust scrutiny and recently concluded a trial related to major government cases against the company.
Ives remarked that the fallout from this deal could have broad effects across the tech sector, suggesting that Google will intensify its efforts to enhance its cybersecurity capabilities. He also indicated that Microsoft might seek to increase its presence in the cybersecurity market in the next 12 to 18 months.
The recent CrowdStrike outage, which resulted from a problematic software update and affected Microsoft’s systems globally, highlighted the need for stronger cybersecurity measures. Despite considering CrowdStrike as the “gold standard” in cybersecurity, Ives suggested that the incident indicates an opportunity for Microsoft to strengthen its cybersecurity offerings, especially following Google’s unsuccessful acquisition attempt.