Google’s attempt to acquire Israeli cybersecurity startup Wiz for $23 billion has fallen through, which could significantly influence the tech industry, particularly Microsoft. Wiz’s CEO, Assaf Rappaport, stated that the decision to reject the offer was challenging, as the company aims to scale towards an annual revenue of $1 billion and plans for an initial public offering.
This acquisition would have strengthened Google’s cybersecurity initiatives, especially following a major outage last week linked to cybersecurity leader CrowdStrike. Analyst Dan Ives from Wedbush noted that investor anxiety and existing antitrust issues contributed to the deal’s collapse. Google is currently facing heightened scrutiny from antitrust regulators and recently concluded one of two significant trials with the Department of Justice.
Ives believes the failure of this acquisition will have a ripple effect across the cybersecurity sector. He anticipates that Google will continue to enhance its cybersecurity capabilities despite the setback with Wiz. Similarly, Microsoft is expected to look for opportunities to expand its cybersecurity offerings in the coming year and a half.
Microsoft faced criticism last week due to a widespread IT outage caused by a problematic update to its cybersecurity software from CrowdStrike. This incident affected numerous Microsoft users globally, leading to significant disruptions across various sectors, including business and government operations.
Although Ives maintains that CrowdStrike is the leading choice in cybersecurity, the recent outage suggests that Microsoft may need to bolster its cybersecurity services, further highlighted by Google’s unsuccessful acquisition attempt.