Wiz’s decision to walk away from Google’s $23 billion acquisition offer may have significant repercussions for Microsoft and the tech industry as a whole.
Wiz, an Israeli cybersecurity startup, chose to reject Google’s bid, with CEO Assaf Rappaport stating that the company aims to develop its own path toward generating $1 billion in annual revenue and pursuing an initial public offering (IPO). This decision comes at a critical time for Google’s cybersecurity division, especially following a recent major outage caused by CrowdStrike, a key player in the sector.
Analyst Dan Ives from Wedbush pointed out that investor apprehensions and ongoing antitrust challenges were factors leading to the breakdown of the acquisition talks. Google has faced increasing scrutiny from regulators in recent years and recently concluded a trial related to one of several significant antitrust cases initiated by the Department of Justice.
Ives believes the failed acquisition will create ripple effects throughout the technology sector, suggesting that Google will intensify its efforts to expand its cybersecurity capabilities, while Microsoft is likely to follow suit. He anticipates that Microsoft might seek to strengthen its own cybersecurity platform within the next 12 to 18 months.
Microsoft found itself in a challenging situation recently due to a widespread IT outage linked to a faulty update from CrowdStrike, which is used to enhance its Windows security. The issue reportedly affected numerous users globally, causing disruptions in various sectors including business, travel, and government functions.
Though Ives still regards CrowdStrike as a leading cybersecurity provider, the recent outage signals a potential need for Microsoft to enhance its cybersecurity measures, a gap that could widen following Google’s unsuccessful deal with Wiz.