Wiz’s decision to reject Google’s $23 billion acquisition offer could significantly affect the tech industry, particularly Microsoft.
The Israeli cybersecurity startup Wiz’s CEO, Assaf Rappaport, announced the “tough” choice to decline Google’s offer, stating that the goal is to build the company toward achieving $1 billion in annual revenue and pursuing an IPO.
This acquisition would have enhanced Google’s cybersecurity capabilities, especially after a major outage recently attributed to CrowdStrike shook the cyber world. In the wake of the no-deal announcement, Wedbush analyst Dan Ives noted that investor concerns and antitrust issues were contributing factors to the deal’s collapse. Google is currently facing heightened antitrust scrutiny, having recently concluded its trial in one of two major cases brought forth by the Department of Justice.
Ives asserted that the absence of the Wiz deal would have ripple effects throughout the sector, and he anticipates that Google will intensify efforts to strengthen its cybersecurity presence while Microsoft is expected to follow a similar strategy.
He remarked, “We believe consolidation is overdue in the cybersecurity sector and we would expect Microsoft to potentially pursue this pathway and enhance its cybersecurity platform in the coming 12 to 18 months.” Microsoft found itself under scrutiny after a global IT outage linked to an issue with CrowdStrike’s software, which is crucial for protecting its Windows operating systems. This incident led to significant disruptions, highlighting the necessity for Microsoft to reinforce its cybersecurity capabilities, especially with Google’s unsuccessful acquisition leaving more opportunities for growth in the sector.