Wiz’s decision to walk away from a potential $23 billion acquisition by Google could significantly impact the technology sector, particularly affecting Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, chose not to accept Google’s offer in order to pursue its goal of achieving $1 billion in annual revenue and preparing for an initial public offering (IPO).
The acquisition, which would have enhanced Google’s cybersecurity capabilities, fell through amid investor apprehensions and ongoing antitrust investigations involving Google. Recently, the tech giant faced scrutiny during a trial linked to major legal actions from the Department of Justice.
Dan Ives, an analyst at Wedbush, indicated that the cancellation of the deal may create reverberations throughout the technology industry. He noted that despite the setback with Wiz, Google is likely to continue focusing on expanding its cybersecurity portfolio. Similarly, Microsoft is expected to take steps to strengthen its cybersecurity platform in the next year or so.
Microsoft was recently in the spotlight due to a significant global IT outage that resulted from a faulty update to CrowdStrike’s cybersecurity software. This incident affected numerous users and disrupted various operations around the world. Despite being regarded as a leader in cybersecurity, the outage highlighted the need for Microsoft to enhance its security measures, and the collapse of the Wiz deal may present new opportunities for improvement.