Wiz’s decision to turn down Google’s $23 billion acquisition bid could have significant effects on the tech industry, particularly for Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, opted out of the deal to focus on achieving an annual revenue target of $1 billion and pursuing an initial public offering.
This move comes in the wake of a major outage caused by CrowdStrike, a key player in cybersecurity and a supplier to Microsoft, which raised alarms across the cyber landscape. Wedbush analyst Dan Ives indicated that investor apprehensions and ongoing antitrust challenges contributed to the collapse of the deal. Google is currently facing heightened scrutiny from regulators and recently concluded a major trial linked to antitrust issues.
Ives noted that the failed acquisition will have ripple effects throughout the tech sector, predicting that Google will persist in expanding its cybersecurity initiatives despite the setback with Wiz. He also suggested that Microsoft may take steps to enhance its cybersecurity offerings in the next year to 18 months.
The recent CrowdStrike outage, impacting numerous businesses and government functions, has put Microsoft under scrutiny, highlighting the importance of strengthening its cybersecurity capabilities. Even though Ives maintains that CrowdStrike remains a leading cybersecurity provider, the disruption underscores the need for Microsoft to solidify its position in the sector, particularly with Google’s thwarted acquisition creating more opportunities.