Google’s attempt to acquire the Israeli cybersecurity company Wiz for $23 billion has come to an abrupt end, a decision that could have significant repercussions for the technology landscape, particularly impacting Microsoft.
Wiz’s CEO, Assaf Rappaport, announced the difficult decision to reject Google’s offer as the company aims to focus on growing its revenue to $1 billion annually and pursuing an initial public offering (IPO).
This proposed acquisition would have strengthened Google’s cybersecurity efforts, especially following a major disruption in the industry cause by a significant outage linked to CrowdStrike last week. Dan Ives, an analyst at Wedbush, indicated that the deal fell apart largely due to investor concerns and antitrust considerations. Google has faced intensive scrutiny over antitrust issues and recently concluded a trial linked to a major case from the Department of Justice.
Ives noted that the collapse of the Wiz deal is expected to have ripple effects throughout the sector. He predicts that Google will likely continue to enhance its cybersecurity initiatives, a path also anticipated for Microsoft.
Ives stated that the cybersecurity sector is due for consolidation and speculated that Microsoft may pursue similar strategies to strengthen its own cybersecurity capabilities within the next 12 to 18 months.
The recent CrowdStrike outage, caused by a problematic update to Microsoft’s cybersecurity software, has further highlighted the need for improvements in this area. Many Microsoft users experienced significant disruptions during the outage, which affected businesses, flights, and government operations.
Despite these challenges, Ives maintains that CrowdStrike remains a top player in cybersecurity, suggesting that Microsoft’s failed deal with Wiz might create additional opportunities for strengthening its cybersecurity offerings.