Wiz’s decision to turn down Google’s acquisition offer could significantly impact Microsoft and the tech industry at large. Google had aimed to acquire the Israeli cybersecurity startup Wiz for $23 billion, but the deal fell through as Wiz CEO Assaf Rappaport opted to prioritize the company’s growth toward an annual revenue goal of $1 billion and a potential IPO.
The failed acquisition would have strengthened Google’s position in cybersecurity, especially after a recent major outage from industry leader CrowdStrike that shook the cyber landscape. Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust investigations were key reasons behind the deal’s collapse. Google has faced intense scrutiny and has recently concluded a trial related to antitrust cases brought by the Department of Justice.
Ives expressed that the fallout from this deal not happening will have ripple effects across the tech sector. He speculated that Google will likely remain focused on expanding its cybersecurity capabilities despite the loss of the Wiz acquisition. Microsoft, too, is expected to reevaluate its strategy.
Ives indicated that consolidation within the cybersecurity space is overdue, and Microsoft may pursue opportunities to enhance its cybersecurity platform in the next 12 to 18 months. Microsoft’s recent challenges were highlighted during a global IT outage linked to a faulty update from CrowdStrike, which is utilized within Microsoft’s Windows to prevent cyber intrusions. This incident, described by some users as the “little blue screens of death,” disrupted various sectors globally. While Ives maintains that CrowdStrike remains a leader in cybersecurity, the incident suggests that Microsoft may need to strengthen its own cybersecurity offerings further, with the failure of the Wiz deal possibly providing an impetus for that change.