Google’s potential acquisition of Israeli cybersecurity startup Wiz for $23 billion has fallen through, a decision that carries significant implications for the tech landscape, particularly for Microsoft. Wiz CEO Assaf Rappaport announced the tough choice to decline Google’s offer to focus on expanding Wiz to achieve $1 billion in annual revenue and pursue an initial public offering.
This acquisition could have significantly enhanced Google’s cybersecurity capabilities, especially following a recent massive outage linked to industry leader CrowdStrike. According to Wedbush analyst Dan Ives, factors such as investor apprehension and ongoing antitrust concerns surrounding Google contributed to the deal’s collapse. Google has faced heightened antitrust scrutiny, recently concluding its trial concerning a major case initiated by the Department of Justice.
Ives noted that the cancellation of this deal might have ripple effects throughout the cybersecurity sector. He anticipates that Google will intensify efforts to enhance its cybersecurity services, a path that Microsoft is likely to follow as well.
The recent global IT outage due to a problematic update in CrowdStrike’s software drew negative attention to Microsoft, which utilizes CrowdStrike to safeguard its operating systems. The incident led to widespread reports of system failures, disrupting businesses and governmental operations.
Despite the setback, Ives maintains that CrowdStrike remains the “gold standard” in cybersecurity. He suggests that the failed acquisition presents Microsoft with an opportunity to strengthen its own cybersecurity offerings in the near future.