Priya PatelTLDR:
- Google’s potential $23 billion acquisition of cybersecurity firm Wiz has ended, with Wiz opting for an IPO instead.
- Antitrust scrutiny fears likely led to the collapse of the deal, but Google may still focus on cybersecurity.
Google’s potential $23 billion acquisition of cybersecurity firm Wiz, which would have been its largest deal ever, has come to an end. Wiz’s CEO, Assaf Rappaport, announced in an email to employees that the company will pursue an initial public offering (IPO) instead. The company aims to reach $1 billion in annual recurring revenue before going public, possibly within the next few years.
The collapse of the deal may have been triggered by antitrust scrutiny concerns. Google has faced lawsuits from the Department of Justice in the past, and acquiring Wiz could have raised further regulatory issues. Despite the deal falling through, Wedbush analyst Dan Ives believes that Google will continue to focus on cybersecurity, given the importance of the sector in the tech firm’s shift to the cloud.
Ives also suggested that Microsoft and Amazon could potentially look into cybersecurity acquisitions following recent events in the industry. Although Alphabet’s shares were unaffected by the news, it is clear that the cybersecurity sector remains an area of interest for major tech companies looking to enhance their offerings and security measures.
