Alphabet Reduces CrowdStrike Stake Before July Outage

Alphabet, Google’s parent company, reduced its stake in CrowdStrike ahead of the global outage in July, reflecting strategic financial adjustments

Alphabet, the parent company of Google, reduced its stake in cybersecurity company Crowdstrike, according to a regulatory filing on Friday. This decision was made well before a global outage caused by a software update last month.

From 855,789 shares, the company reduced its stake to 427,895 class A shares. The change in holdings is as of June 30.

Crowdstrike did not immediately respond to a request for comment from Reuters.

On July 19, a software update by Crowdstrike resulted in a global tech outage that disrupted computer systems, affecting sectors such as banking, healthcare, and aviation.

Since the outage, Crowdstrike shares have lost nearly 35% of their value as investors reconsider their security strategy and regulators debate the safety of entrusting complex and critical software to large corporations.

On Wednesday, shareholders filed a lawsuit against the organization for providing misleading and deceptive information regarding its software, which was responsible for the global outage.

Delta initiates a new tab. The airline’s CEO disclosed to CNBC earlier this week that the disruption resulted in a $500 million loss. The airline has engaged a law firm to pursue compensation from Microsoft and Crowdstrike.