Wiz has opted out of a potential $23 billion acquisition by Google, a move that is expected to impact the tech sector significantly, particularly for Microsoft. Wiz CEO Assaf Rappaport described the decision as “tough,” emphasizing the company’s commitment to achieving $1 billion in annual revenue and pursuing an initial public offering.
Google aimed to enhance its cybersecurity division with this acquisition, especially in light of a major outage last week caused by CrowdStrike, a key player in the cybersecurity field. Following the announcement, Wedbush analyst Dan Ives noted that investor apprehensions and ongoing antitrust scrutiny contributed to the deal’s failure. Google has faced mounting antitrust challenges, including a recent trial involving the Department of Justice.
Ives stated that the abandonment of the Wiz acquisition is likely to have broader implications across the cybersecurity industry. He suggested that Google will continue to expand its cybersecurity capabilities, as will Microsoft. Ives predicted that consolidation in the cybersecurity sector is overdue and that Microsoft could pursue its own acquisitions to strengthen its cybersecurity offerings in the next 12 to 18 months.
This development comes after Microsoft faced criticism during a global IT outage linked to a malfunction in CrowdStrike’s cybersecurity software. The incident affected multiple sectors, leading to disruptions in business operations, air travel, and government functions. While Ives maintains that CrowdStrike remains a leader in cybersecurity, the outage highlights the need for Microsoft to strengthen its cybersecurity assets, particularly in light of the failed Google-Wiz deal.