Wiz’s decision to back out of a proposed $23 billion acquisition by Google could significantly impact the technology landscape, especially for Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, declined the offer to focus on its growth strategy aimed at reaching $1 billion in annual revenue and preparing for an initial public offering (IPO).
This deal would have strengthened Google’s cybersecurity portfolio, particularly following a recent major outage caused by CrowdStrike, a prominent player in the industry. Wedbush analyst Dan Ives noted that concerns from investors and antitrust issues played a role in the collapse of the acquisition. Google has been facing heightened antitrust scrutiny and recently concluded a major trial linked to the Department of Justice.
Ives suggested that the failed acquisition would have broader repercussions across the tech sector, with Google likely to intensify its efforts to expand its cybersecurity capabilities. Microsoft is also expected to take similar steps in response to the changing landscape.
Additionally, Ives stated that there is a pressing need for consolidation within the cybersecurity space, predicting that Microsoft might seek to enhance its own cybersecurity offerings within the next year to 18 months. This comes on the heels of a significant incident where a problem with a CrowdStrike update led to a global IT outage, causing widespread disruptions. As Microsoft faced backlash over this incident, it may now seek to strengthen its cybersecurity measures, and the failure of the Google-Wiz deal may further encourage this pursuit.