Wiz’s decision to walk away from Google’s proposed $23 billion acquisition is expected to have significant consequences for the technology sector, particularly for Microsoft.
The Israeli cybersecurity firm’s CEO, Assaf Rappaport, announced that the company would not proceed with the acquisition as he aims to grow Wiz to achieve $1 billion in annual revenue and pursue an IPO. This rejection follows a recent cybersecurity incident involving a major outage linked to CrowdStrike, further highlighting the growing demand for robust cybersecurity solutions.
Wedbush analyst Dan Ives noted that the inability to finalize the deal raises investor concerns and is reflective of ongoing antitrust challenges faced by Google, which is currently navigating scrutiny from regulators. Ives emphasized that the repercussions of this deal falling through could resonate across the tech landscape.
Despite the setback, Ives believes Google will continue to enhance its cybersecurity initiatives, as will Microsoft, which may seek to strengthen its own cybersecurity offerings in the next year and a half. This comes on the heels of a significant global IT outage triggered by a faulty update to Microsoft’s cybersecurity software supplied by CrowdStrike. The incident caused widespread disruptions across various sectors, indicating a growing need for improved cybersecurity.
While Ives maintains that CrowdStrike remains a leading player in the field, the recent outage suggests an opportunity for Microsoft to bolster its cybersecurity business further, especially following the failed acquisition of Wiz.