Wiz’s decision to walk away from a potential $23 billion acquisition by Google has significant implications for the tech industry, particularly for Microsoft. The Israeli cybersecurity startup’s CEO, Assaf Rappaport, announced the rejection of the offer, indicating a commitment to grow Wiz independently with a target of reaching $1 billion in annual revenue and pursuing an IPO.
This deal would have enhanced Google’s cybersecurity capabilities, especially following a major outage last week linked to CrowdStrike, a key player in the industry. Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust issues contributed to the deal’s collapse. Google, currently facing rigorous antitrust scrutiny, has recently concluded a trial stemming from a Department of Justice case.
Ives emphasized that the failure of the acquisition could create ripples across the cybersecurity sector. He predicted that Google would persist in expanding its cybersecurity endeavors despite losing the Wiz deal. He also suggested that Microsoft might take this opportunity to strengthen its own cybersecurity platform in the next 12 to 18 months.
Microsoft recently faced scrutiny after experiencing significant disruption during a global IT outage attributed to a problematic update from CrowdStrike, which provides cybersecurity software for its Windows operating system. This incident led to widespread reports of system failures among users. While Ives maintains that CrowdStrike remains a benchmark for cybersecurity, the outage highlights the need for Microsoft to enhance its cybersecurity efforts, with the dismissal of the Wiz deal potentially paving the way for such advancements.