Wiz’s decision to reject Google’s acquisition offer could have significant repercussions for Microsoft and the technology sector as a whole. Google aimed to purchase the Israeli cybersecurity startup Wiz for $23 billion, but Wiz CEO Assaf Rappaport announced on Tuesday that the company would not go through with the deal in order to focus on its goal of reaching $1 billion in annual revenue and preparing for an initial public offering.
This acquisition, if successful, would have enhanced Google’s cybersecurity offerings just as the industry was rocked by a significant outage linked to CrowdStrike last week. Analyst Dan Ives from Wedbush pointed out that concerns among investors and ongoing antitrust investigations were factors that led to the deal falling through. Google has been under intense scrutiny regarding antitrust issues in recent years and has recently concluded its trial related to one of two major cases brought by the Department of Justice.
Ives noted that the failure of the deal would have “ripple impacts” across the sector and anticipated that Google would continue to strengthen its cybersecurity initiatives despite the setback. Furthermore, he suggested that Microsoft could seize this opportunity to enhance its own cybersecurity capabilities over the next 12 to 18 months.
Microsoft faced negative attention due to a widespread IT outage caused by a faulty update in its cybersecurity software provided by CrowdStrike last Friday. This situation highlighted the vulnerabilities within Microsoft’s systems, as users around the globe encountered significant disruptions, including the infamous “blue screens of death.” Despite the incident, Ives maintains that CrowdStrike remains the “gold standard” in cybersecurity, but he emphasized the necessity for Microsoft to improve its cybersecurity offerings in light of recent events, especially given the failed Google-Wiz deal.