Wiz’s decision to decline Google’s acquisition offer could significantly impact the tech sector, particularly Microsoft. The Israeli cybersecurity startup was in talks for a $23 billion purchase, but CEO Assaf Rappaport opted to focus on achieving $1 billion in annual revenue and pursuing an IPO instead.
This decision comes at a time when Google’s cybersecurity initiatives are under increased scrutiny, especially following a recent major outage linked to CrowdStrike, a notable player in the cybersecurity field. According to Wedbush analyst Dan Ives, the fallout from this failed acquisition could resonate throughout the industry.
Ives highlighted that concerns about investor reactions and ongoing antitrust challenges contributed to the deal’s collapse. In light of this, he predicts that Google will intensify efforts to enhance its cybersecurity capabilities, a strategy that Microsoft is also likely to adopt.
Ives emphasized the need for consolidation in the cybersecurity market, suggesting that Microsoft may look to strengthen its own cybersecurity platform over the next year to 18 months. This comes after a massive IT outage tied to CrowdStrike’s software, which raised questions about the robustness of Microsoft’s cybersecurity measures.
Despite the outage, Ives maintains that CrowdStrike remains a leading name in cybersecurity. However, the failed acquisition presents Microsoft with an opportunity to bolster its cybersecurity division further.