Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has been unsuccessful, marking what could have been its largest acquisition. Wiz CEO Assaf Rappaport announced the decision to reject Google’s substantial offer, stating that the company intends to focus on reaching $1 billion in annual revenue and pursuing an IPO.
This acquisition was expected to strengthen Google’s cybersecurity division, particularly following a significant outage caused by CrowdStrike, a major player in the field, just days prior. Wedbush analyst Dan Ives highlighted that concerns over investor confidence and ongoing antitrust investigations contributed to the deal’s collapse. Google has faced significant antitrust scrutiny in recent years, having just concluded a major trial from the Department of Justice.
Ives noted that the failure of this acquisition could have broader implications across the tech sector. He anticipates that Google will continue to invest in expanding its cybersecurity capabilities despite the setback with Wiz, a trend likely to be mirrored by Microsoft.
He mentioned that there is a pressing need for consolidation within the cybersecurity sector, suggesting that Microsoft may look to enhance its own cybersecurity offerings in the near future. Microsoft itself found itself under scrutiny following a widespread global IT outage linked to a faulty update from CrowdStrike, which disrupted services for businesses, flights, and government operations worldwide. While Ives maintains that CrowdStrike remains a leading name in cybersecurity, the recent issues have underscored the need for Microsoft to strengthen its cybersecurity business in light of Google’s failed acquisition.