Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has been halted, which could have significant implications for the tech industry, particularly for Microsoft. Wiz CEO Assaf Rappaport announced the decision to reject the offer, stating that the company aims to achieve $1 billion in annual revenue and prepare for an initial public offering (IPO).
This acquisition would have enhanced Google’s cybersecurity portfolio, especially following a major outage caused by CrowdStrike, a significant player in the cybersecurity field, just days prior. Analyst Dan Ives from Wedbush noted that the failed deal is attributed to investor concerns and ongoing antitrust issues surrounding Google, which is under intense scrutiny. Ives pointed out that Google is likely to intensify its efforts to expand its cybersecurity presence despite this setback, and similar ambitions may be on the horizon for Microsoft.
Ives added that there is a pressing need for consolidation in the cybersecurity sector and suggested that Microsoft may look to strengthen its own cybersecurity platform in the next 12 to 18 months. Microsoft recently faced criticism due to a global IT outage linked to a problematic update from CrowdStrike, which affected various sectors including businesses, flights, and government services. While Ives still regards CrowdStrike as a leader in cybersecurity, the incident highlights the necessity for Microsoft to enhance its cybersecurity capabilities, further emphasizing the potential opportunities created by Google’s abandoned acquisition of Wiz.