Google’s attempt to acquire the Israeli cybersecurity startup Wiz for $23 billion has come to an end, a decision that could significantly influence the tech industry and particularly Microsoft’s strategies.
Wiz CEO Assaf Rappaport announced the decision to decline the offer, stating that he aims to focus on growing Wiz to reach $1 billion in annual revenue and prepare for an initial public offering (IPO). The potential acquisition was viewed as a move to strengthen Google’s cybersecurity division, especially following a severe disruption caused by CrowdStrike, another cybersecurity firm, which affected numerous businesses and government operations last week.
Wedbush analyst Dan Ives noted that the breakdown of the deal was influenced by investor apprehensions and ongoing antitrust scrutiny that has surrounded Google. The company recently concluded a major trial initiated by the Department of Justice.
Ives predicted that the failure of this acquisition will have widespread effects within the sector. He stated that Google will likely continue to pursue expansion in its cybersecurity efforts, just as Microsoft is expected to do in the face of these developments.
Microsoft has recently faced backlash due to a significant global outage linked to a problematic update in CrowdStrike’s software, which caused disruptions including system failures and operational challenges for various organizations. Despite this incident, Ives still regards CrowdStrike as a leading player in cybersecurity, but suggested that it underscores the need for Microsoft to enhance its cybersecurity capabilities. The failure of Google’s acquisition brings more opportunities for Microsoft to potentially strengthen its position in this rapidly evolving field.