Wiz’s decision to decline Google’s acquisition offer could significantly affect the tech landscape, particularly for Microsoft. The Israeli cybersecurity startup was poised to be acquired by Google for $23 billion, but CEO Assaf Rappaport opted to reject the deal in favor of building Wiz towards achieving $1 billion in annual revenue and eventually going public.
This acquisition would have strengthened Google’s cybersecurity division, particularly following a recent major outage linked to CrowdStrike, a leading player in the industry. Analyst Dan Ives from Wedbush noted that concerns over antitrust issues and investor sentiments contributed to the deal’s failure. Google has faced stringent antitrust scrutiny and has recently concluded one of its major trials with the Department of Justice.
Ives mentioned that the dissolution of this deal could send shockwaves throughout the cybersecurity sector. Despite the setback, he believes Google will continue to enhance its cybersecurity endeavors, and he anticipates that Microsoft might pursue similar strategies in the upcoming year to 18 months.
The recent global IT outage, attributed to a faulty CrowdStrike update affecting Microsoft’s systems, highlighted vulnerabilities. Microsoft users encountered significant disruptions, and this incident underscores the need for Microsoft to strengthen its cybersecurity measures. While CrowdStrike remains a leading name in the field, the failed acquisition of Wiz could propel Microsoft to fortify its security platforms further.