Wiz’s decision to reject Google’s $23 billion acquisition offer could have significant repercussions for the tech industry, particularly for Microsoft. Google aimed to enhance its cybersecurity portfolio through the acquisition of the Israeli startup, which just recently experienced a major outage at CrowdStrike, an industry heavyweight.
Wiz’s CEO, Assaf Rappaport, stated the choice to decline the offer was a difficult one but crucial for the company’s goal of achieving $1 billion in annual revenue and pursuing an IPO. This missed opportunity comes at a time when Google’s cybersecurity efforts are under close observation, especially following the antitrust challenges it has faced.
Wedbush analyst Dan Ives indicated that this failed deal would create ripple effects throughout the sector. He noted that despite the absence of the Wiz acquisition, Google is likely to continue expanding its cybersecurity initiatives. He also mentioned that this situation presents Microsoft with a chance to enhance its cybersecurity capabilities as the industry anticipates consolidation in this sector over the next year or so.
Microsoft recently faced scrutiny due to a widespread IT outage linked to a malfunctioning update of cybersecurity software provided by CrowdStrike. This incident disrupted various services globally, highlighting the need for improved cybersecurity measures. Ives emphasized that while CrowdStrike remains a leader in cybersecurity, the recent outage suggests that Microsoft may need to strengthen its position in this area, especially in light of Google’s failed acquisition.