Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has come to an end after Wiz’s CEO, Assaf Rappaport, announced the decision to decline the offer. Rappaport indicated that the choice was difficult but necessary as Wiz aims to independently reach $1 billion in annual revenue and pursue an initial public offering.
The proposed acquisition would have significantly strengthened Google’s cybersecurity capabilities, particularly following a recent major outage attributed to CrowdStrike, a leading player in the cybersecurity field. Analyst Dan Ives from Wedbush suggested that concerns over investor reaction and ongoing antitrust issues contributed to the breakup of the deal. Google has recently faced intense scrutiny related to antitrust matters and has just concluded a trial associated with one of the Department of Justice’s two major lawsuits against it.
Ives noted that the cancellation of the Wiz acquisition could have wider repercussions across the tech sector. He anticipates that Google will continue to enhance its cybersecurity efforts despite the setback and suggested that Microsoft might also seek to expand its cybersecurity platform in the coming year or so.
Microsoft, meanwhile, has recently faced challenges of its own, stemming from a significant global IT outage triggered by a problematic update to CrowdStrike’s cybersecurity software, which led to widespread disruption across various sectors. While Ives maintains that CrowdStrike remains a leading entity in cybersecurity, the incident highlights the necessity for Microsoft to bolster its cybersecurity offerings, especially in light of Google’s failed acquisition.