Wiz’s decision to turn down Google’s proposed $23 billion acquisition could significantly impact the technology landscape, particularly for Microsoft. The Israeli cybersecurity firm was in negotiations with Google, aiming to strengthen its cybersecurity portfolio, particularly after a major disruption caused by CrowdStrike, a competitor in the sector.
Wiz’s CEO, Assaf Rappaport, stated that the choice to reject the offer was a challenging one, as the company seeks to grow towards achieving $1 billion in annual revenue and preparing for an eventual IPO.
Wedbush analyst Dan Ives indicated that the cancellation of this deal could create “ripple effects” across the tech industry. He highlighted that Google is likely to increase its focus on expanding its cybersecurity capabilities, a strategy that Microsoft is also expected to pursue in light of recent developments.
Ives noted that consolidation within the cybersecurity sector is overdue and suggested that Microsoft may explore opportunities to enhance its cybersecurity offerings over the next year to year and a half.
Recently, Microsoft found itself in a difficult position due to a global IT outage linked to CrowdStrike’s cybersecurity software, which affected users and operations worldwide. Although Ives still considers CrowdStrike as the leading figure in cybersecurity, this incident emphasizes the need for Microsoft to strengthen its own cybersecurity measures, particularly following the collapse of the Wiz acquisition.