Google’s planned acquisition of Israeli cybersecurity startup Wiz for $23 billion has officially fallen through, a decision that could significantly impact the tech industry, particularly affecting Microsoft.
Wiz’s CEO, Assaf Rappaport, announced the difficult choice to reject Google’s offer, stating the company’s focus remains on achieving $1 billion in annual revenue and preparing for an initial public offering. This acquisition would have enhanced Google’s cybersecurity capabilities, especially after a major outage attributed to CrowdStrike, a leading cybersecurity firm, caused widespread disruptions last week.
Wedbush analyst Dan Ives noted that concerns among investors and ongoing antitrust issues were central to the deal’s collapse. Google has recently been under stringent antitrust scrutiny and has just concluded a significant trial related to a case brought by the Department of Justice.
Ives anticipates broader repercussions in the cybersecurity sector due to the failed acquisition, suggesting that Google will continue to invest in expanding its cybersecurity operations, which could lead to increased competition with Microsoft.
He also speculated that Microsoft might decide to pursue its own acquisitions to strengthen its cybersecurity offerings over the next year and a half. This speculation comes on the heels of a global IT outage linked to a problematic update in Microsoft’s software facilitated by CrowdStrike, which caused considerable disruptions across various industries and services.
While Ives still regards CrowdStrike as a leading company in cybersecurity, the recent outage could prompt Microsoft to evaluate and enhance its cybersecurity strategies further, particularly in light of Google’s unsuccessful acquisition move.