Wiz’s decision to walk away from Google’s proposed $23 billion acquisition could have significant consequences for the technology sector, especially for Microsoft. The Israeli cybersecurity startup Wiz, led by CEO Assaf Rappaport, turned down Google’s offer in favor of pursuing its goal to generate $1 billion in annual revenue and potentially prepare for an IPO.
The acquisition would have enhanced Google’s cybersecurity capabilities following a major disruption caused by CrowdStrike, which affected numerous businesses and services last week. Dan Ives, an analyst at Wedbush, noted that concerns among investors and ongoing antitrust investigations contributed to the deal’s collapse. Google, already facing intense scrutiny, recently concluded one of its trials related to major antitrust cases from the Department of Justice.
Ives highlighted that the cancellation of the Wiz purchase will have “ripple impacts” throughout the industry and suggested that Google will likely intensify its efforts to enhance its cybersecurity offerings. He also indicated that Microsoft may take this opportunity to strengthen its own cybersecurity division in the upcoming year and a half.
Microsoft was recently in the spotlight due to a widespread IT outage linked to an update to CrowdStrike’s cybersecurity software, which is utilized by Windows to protect against unauthorized access. The incident led to a number of disruptions, including for businesses and government operations, prompting further discussion about the need for improvement in Microsoft’s cybersecurity measures, especially in light of Google’s abandoned acquisition.