Wiz’s decision to back out of a potential $23 billion acquisition by Google is expected to significantly impact the tech industry, particularly Microsoft. Wiz CEO Assaf Rappaport announced the company would not accept Google’s offer in order to focus on achieving $1 billion in annual revenue and pursuing an IPO.
This acquisition could have enhanced Google’s cybersecurity capabilities at a time when the sector was recently shaken by a major outage involving CrowdStrike, a key player in cybersecurity. According to Wedbush analyst Dan Ives, the deal’s collapse stemmed from investor concerns and antitrust issues, as Google has faced intense scrutiny and recently concluded a trial related to antitrust cases brought by the Department of Justice.
Ives suggested that the failed acquisition would create ripple effects across the cybersecurity sector. He believes Google will continue to expand its cybersecurity efforts despite this setback, and Microsoft may also look to bolster its cybersecurity platform in the next 12 to 18 months.
Microsoft faced challenges recently due to the disruption caused by a faulty CrowdStrike update, which impacted its systems. Despite this setback, Ives maintains that CrowdStrike remains a leader in the industry, but the incident indicates that Microsoft may need to strengthen its cybersecurity capabilities further, especially in light of Google’s unfulfilled acquisition.