Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has officially fallen through, marking a significant shift in the tech landscape, particularly impacting Microsoft. Wiz’s CEO, Assaf Rappaport, stated that the decision to reject the lucrative offer was challenging but necessary for the company to focus on building its revenue toward an annual goal of $1 billion and preparing for an eventual IPO.
The potential acquisition would have strengthened Google’s cybersecurity offerings, especially following a major disruption in the cybersecurity sector caused by a recent outage from CrowdStrike. Wedbush analyst Dan Ives indicated that concerns over investor sentiment and ongoing antitrust issues played a crucial role in the deal’s collapse. Google has faced intense scrutiny regarding antitrust matters and recently concluded a trial related to one of two significant cases from the Department of Justice.
Ives expressed in a note to investors that the failure of this deal could have broad implications across the technology industry. He suggested that Google would continue to enhance its cybersecurity initiatives despite the setback with Wiz. Similarly, he expected Microsoft to explore opportunities to strengthen its own cybersecurity platform in the coming 12 to 18 months.
This came amid a troubling occurrence for Microsoft as well, following a global IT outage triggered by a problematic update to cybersecurity software from CrowdStrike. The incident led to widespread issues for Microsoft users, with many encountering severe disruptions, including business interruptions and government operations being affected.
While Ives acknowledged that CrowdStrike remains a leading company in the cybersecurity field, the recent outage has emphasized the need for Microsoft to invest more in its cybersecurity capabilities, especially after Google’s unsuccessful attempt to acquire Wiz.