Google’s anticipated acquisition of Israeli cybersecurity startup Wiz for $23 billion has fallen through, marking a significant moment for the tech industry, particularly for Microsoft. Wiz CEO Assaf Rappaport announced the difficult decision to reject Google’s substantial offer to focus on achieving $1 billion in annual revenue and pursuing an initial public offering.
This acquisition would have enhanced Google’s cybersecurity division, especially following a recent critical outage involving CrowdStrike, a major player in the industry. Wedbush analyst Dan Ives highlighted that investor hesitations and ongoing antitrust challenges led to the deal’s collapse. Google has faced increasing scrutiny from regulators, culminating in its recent trial related to antitrust issues.
Ives noted that the failed acquisition will likely create ripple effects across the technology sector. He anticipates that Google will intensify its efforts to expand in cybersecurity despite the loss of this opportunity, and Microsoft may also seek to fortify its cybersecurity offerings in the near future.
The urgency for Microsoft has been underscored by a recent global IT outage attributable to a problematic update in its cybersecurity solutions provided by CrowdStrike. This downtime led to widespread disruptions across various sectors. Despite CrowdStrike being viewed as a leading cybersecurity firm, the incident suggests that Microsoft may need to enhance its cybersecurity capabilities even more, and the collapse of the Wiz deal may further encourage such an endeavor.