Wiz’s decision to back out of a proposed $23 billion acquisition by Google has significant implications for the technology sector, particularly for Microsoft.
Wiz, an Israeli cybersecurity startup aimed at reaching $1 billion in annual revenue and an initial public offering (IPO), turned down Google’s offer, according to CEO Assaf Rappaport. This decision comes in the wake of a significant outage experienced by CrowdStrike, an industry leader, highlighting the heightened focus on cybersecurity.
Analyst Dan Ives from Wedbush noted that the collapse of the deal stemmed from investor concerns and ongoing antitrust issues surrounding Google, which has faced intensified scrutiny in recent years. Ives believes that the absence of this acquisition will lead to broader impacts across the cybersecurity sector. He suggests that Google, despite missing out on Wiz, will likely continue to invest in expanding its cybersecurity initiatives alongside Microsoft.
Ives anticipates that Microsoft may seek to enhance its own cybersecurity services in the coming year and a half, especially following a recent global IT outage linked to a faulty CrowdStrike update that significantly disrupted operations worldwide. While Ives still regards CrowdStrike as a leading figure in the field, the incident underscores the need for Microsoft to strengthen its cybersecurity efforts, with the failed Google-Wiz deal opening new opportunities for both companies.