Wiz’s decision to reject Google’s acquisition offer could significantly impact the tech industry, particularly Microsoft. The Israeli cybersecurity startup opted out of a proposed $23 billion deal with Google, with CEO Assaf Rappaport stating the choice was made to focus on building Wiz into a company targeting $1 billion in annual revenue and an eventual IPO.
The acquisition would have strengthened Google’s cybersecurity division, particularly following a notable outage caused by CrowdStrike, a major player in the industry, last week. Analyst Dan Ives from Wedbush suggested that investor concerns and ongoing antitrust issues for Google contributed to the deal’s collapse. Google has faced intense scrutiny regarding its market practices and recently concluded a significant legal trial with the Department of Justice.
Ives indicated that the rejection of the deal will have broader implications across the tech sector, predicting that Google will continue to enhance its cybersecurity efforts despite the setback. Similarly, Microsoft is expected to pursue its own expansion in cybersecurity.
With the adverse attention from the global IT outage linked to CrowdStrike’s software, which affected numerous operations worldwide, there is pressure on Microsoft to strengthen its cybersecurity capabilities. Ives mentioned that consolidation is needed in the cybersecurity field and anticipated Microsoft’s efforts to bolster its platform in the next 12 to 18 months.