The potential acquisition of Israeli cybersecurity startup Wiz by Google for $23 billion has fallen through, a move that could significantly impact the tech industry, particularly Microsoft. Wiz’s CEO, Assaf Rappaport, announced the difficult decision to reject Google’s offer in order to focus on achieving $1 billion in annual revenue and preparing for an IPO.
This acquisition would have strengthened Google’s cybersecurity capabilities, especially in light of a recent major outage caused by CrowdStrike, a key player in the industry. Analyst Dan Ives from Wedbush highlighted that investor concerns and antitrust issues were central to the deal’s collapse. Google has faced intense scrutiny regarding its business practices and recently concluded a significant trial related to antitrust charges.
Ives noted that the fallout from this failed deal is likely to reverberate across the sector, suggesting that Google would continue to invest in expanding its cybersecurity operations despite the setback. He also expected Microsoft to respond to this gap in the market and potentially enhance its cybersecurity offerings within the next year and a half.
Microsoft recently faced criticism due to a global IT outage linked to an update in CrowdStrike’s cybersecurity software, which disrupted numerous services. While still regarded as a leader in the field, the incident underscored the need for Microsoft to bolster its cybersecurity measures, a need that the ending of the Wiz deal may further highlight.