Wiz Backing Out of Google Deal Could Have Major Implications for Microsoft, Analyst Says
Google’s planned acquisition of Israeli cybersecurity startup Wiz for $23 billion has fallen through, a move that may significantly impact the tech industry, especially Microsoft.
Wiz CEO Assaf Rappaport decided to turn down the substantial offer from Google to continue pushing towards making $1 billion in annual revenue and preparing for an IPO. This decision comes at a time when the cybersecurity sector was shaken by a massive outage last week due to a fault at industry giant CrowdStrike.
Wedbush analyst Dan Ives commented in a research note that investor concerns and antitrust issues were likely factors in the collapse of the deal. Google, which has been under intense antitrust scrutiny in recent years, recently concluded its trial in one of two major cases from the Department of Justice.
Ives noted that the failure of the deal could lead to significant changes within the cybersecurity sector. He anticipates Google will continue to expand its cybersecurity initiatives despite the setback with Wiz. Meanwhile, he expects Microsoft to further develop its own cybersecurity strategies over the next 12 to 18 months.
Microsoft was recently at the center of a global IT outage caused by a faulty update to its CrowdStrike cybersecurity software. This issue led to disruptions in businesses, flights, and government operations worldwide, as Microsoft’s Windows operating systems relied on CrowdStrike to prevent hacker access.
Despite the outage, Ives still considers CrowdStrike the “gold standard” in cybersecurity. However, the failure of the Google-Wiz deal could serve as an opportunity for Microsoft to enhance its cybersecurity operations.