Wiz’s decision to walk away from a potential $23 billion acquisition by Google could significantly impact the technology sector, especially Microsoft. The Israeli cybersecurity firm was seeking to focus on achieving $1 billion in annual revenue and an eventual public offering rather than merging with Google.
The acquisition would have strengthened Google’s cybersecurity efforts, particularly following a recent major outage involving CrowdStrike, a leading cybersecurity provider. Analyst Dan Ives from Wedbush highlighted that investor concerns and ongoing antitrust issues played a role in the deal’s collapse. Google has faced intense scrutiny from regulators and has just concluded a trial related to these matters.
Ives pointed out that the failed deal may have far-reaching consequences across the industry. Despite the setback, Google is expected to intensify its efforts to expand its cybersecurity capabilities, a path that Microsoft is likely to follow as well.
Ives noted that consolidation within the cybersecurity sector is overdue and predicted that Microsoft might pursue enhancements to its cybersecurity platform in the next 12 to 18 months. Microsoft’s reputation recently took a hit following a significant global IT disruption tied to a flawed update from CrowdStrike, which affected various sectors including businesses, travel, and government operations.
While Ives maintains that CrowdStrike remains a top player in cybersecurity, the incident suggests that Microsoft could benefit from strengthening its own cybersecurity services, especially as the opportunity increases following Google’s abandoned acquisition.