In a significant turn of events for the tech industry, Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has fallen through. Wiz CEO Assaf Rappaport shared that the decision to reject Google’s offer was challenging, as his focus remains on developing the company toward achieving $1 billion in annual revenue and eventually going public.
This acquisition would have strengthened Google’s cybersecurity operations, especially following a major outage last week linked to CrowdStrike, a prominent player in the cybersecurity field. According to Wedbush analyst Dan Ives, the collapse of the deal stemmed from investor concerns and ongoing antitrust scrutiny facing Google, which has recently concluded a trial related to two significant cases from the Department of Justice.
Ives indicated that the failed acquisition would have broader implications across the tech sector. He projects that Google will likely continue to enhance its cybersecurity efforts despite the setback with Wiz, a sentiment that extends to Microsoft as well.
Ives noted that consolidation within the cybersecurity industry is overdue and anticipates that Microsoft may pursue opportunities to strengthen its cybersecurity portfolio in the next 12 to 18 months. The company recently faced challenges due to disruptions caused by a faulty update to CrowdStrike’s cybersecurity software, which led to widespread issues for its users, including system failures known as the “blue screens of death.”
While Ives maintains that CrowdStrike remains a leader in the field, the recent outage highlights the necessity for Microsoft to bolster its cybersecurity capabilities, particularly in light of Google’s failed acquisition attempt.