Wiz’s decision to withdraw from a potential $23 billion acquisition by Google could significantly impact the tech sector, particularly Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, opted to decline the deal to focus on building the company towards an annual revenue goal of $1 billion and preparing for an initial public offering (IPO).
This acquisition was intended to strengthen Google’s cybersecurity efforts, especially following a major service outage from CrowdStrike that affected various industries last week. Wedbush analyst Dan Ives noted that the collapse of the deal stemmed from investor apprehensions and ongoing antitrust challenges facing Google, which is currently under close scrutiny from regulators.
Ives suggested that the failure of the Wiz acquisition would create “ripple impacts” throughout the tech industry. He anticipated that Google would persist in its efforts to expand its cybersecurity capabilities. Similarly, Ives predicted that Microsoft might look to enhance its own cybersecurity platform in the upcoming 12 to 18 months, given the current market dynamics.
Microsoft’s recent troubles were highlighted during the widespread IT outage linked to a faulty CrowdStrike software update, which disrupted services for numerous users worldwide. Although Ives maintains that CrowdStrike remains a leading player in the cybersecurity domain, the incident suggests that Microsoft could benefit from strengthening its cybersecurity offerings, a gap that the failed Wiz deal may further expose.