Wiz’s decision to back out of a potential acquisition by Google could significantly impact the tech industry, particularly Microsoft. The company was considering acquiring the Israeli cybersecurity firm for $23 billion, but Wiz CEO Assaf Rappaport opted to reject the offer, choosing instead to focus on growing Wiz’s revenue towards an ambitious $1 billion goal and preparing for an IPO.
This acquisition would have strengthened Google’s cybersecurity offerings, especially following a recent major outage attributed to CrowdStrike, a key player in the industry. Analyst Dan Ives of Wedbush noted that concerns from investors and ongoing antitrust issues played a role in the deal’s collapse. Google has faced heightened scrutiny over antitrust matters and recently concluded a trial related to such concerns.
Ives expressed that the failure of this acquisition could have broader consequences across the tech sector, suggesting that it may lead to increased competition, particularly in cybersecurity, as both Google and Microsoft look to expand their capabilities. He anticipated that Microsoft might target further consolidation within the cybersecurity space in the next year to 18 months.
Additionally, the recent outage caused by a problematic update to CrowdStrike’s software, which disrupted activities ranging from businesses to flights, has highlighted vulnerabilities in cybersecurity measures. While Ives still regards CrowdStrike as a leading figure in the industry, the incident suggests that strengthening cybersecurity could be essential for Microsoft, especially in light of Google’s missed opportunity with Wiz.