Wiz has withdrawn from a significant acquisition deal with Google, which was set to be the tech giant’s largest acquisition to date at $23 billion. This decision, announced by Wiz CEO Assaf Rappaport, comes as the company aims to prioritize its growth towards generating $1 billion in annual revenue and preparing for an IPO.
The potential acquisition would have enhanced Google’s cybersecurity offerings, particularly following a major disruption in the sector caused by CrowdStrike at the end of last week. Following the news of the deal’s collapse, Wedbush analyst Dan Ives noted that the breakdown stemmed from investor concerns and ongoing antitrust investigations facing Google, which recently concluded its trial in a significant case brought by the Department of Justice.
Ives highlighted that the failure of this deal could ripple across the technology sector, suggesting that both Google and its competitor Microsoft are likely to intensify their focus on boosting their cybersecurity efforts. He anticipates that Microsoft may pursue its own acquisitions and enhancements in its cybersecurity platform within the next year to year and a half.
The recent issues surrounding CrowdStrike, which led to a global IT outage due to a problematic software update affecting Microsoft’s systems, has raised questions about the robustness of existing cybersecurity measures. While Ives maintains that CrowdStrike remains a leading option in cybersecurity, the incident underscores the need for Microsoft to strengthen its capabilities in this area, a possibility that might be further influenced by the failed Wiz deal.