Wiz’s decision to walk away from a potential $23 billion acquisition by Google will have significant repercussions for the tech industry, particularly for Microsoft.
Wiz CEO Assaf Rappaport announced that the company opted to reject Google’s offer in favor of focusing on its goal of reaching $1 billion in annual revenue and pursuing an initial public offering (IPO). This decision came shortly after a major cybersecurity incident involving CrowdStrike, which highlighted vulnerabilities in the sector.
According to Wedbush analyst Dan Ives, the collapse of the deal can be attributed to investor hesitancies and ongoing antitrust concerns that have surrounded Google, especially following the conclusion of its recent trial with the Department of Justice.
Ives indicated that the failed acquisition would create ripple effects throughout the technology sector. He noted that Google would likely continue to invest heavily in enhancing its cybersecurity capabilities, a path that Microsoft is expected to follow as well.
Ives mentioned the pressing need for consolidation within the cybersecurity field and predicted that Microsoft may actively seek to strengthen its cybersecurity platform over the next year or so. This comes after Microsoft faced backlash related to a widespread global IT outage triggered by an update to its CrowdStrike software, which caused significant disruptions in businesses and government operations.
While Ives acknowledges that CrowdStrike remains a leader in cybersecurity, the recent outage serves as a wake-up call for Microsoft to enhance its cybersecurity measures. Additionally, the fallout from Google’s failed acquisition of Wiz could provide Microsoft with further opportunities to expand in this critical area.