Wiz’s decision to reject Google’s acquisition offer could significantly impact the tech industry, particularly Microsoft.
The Israeli cybersecurity firm Wiz turned down Google’s proposal to acquire it for $23 billion, with CEO Assaf Rappaport stating the decision was made to focus on achieving $1 billion in annual revenue and pursuing an initial public offering (IPO). This deal would have strengthened Google’s cybersecurity operations following a major outage affecting the industry instigated by CrowdStrike last week.
Analyst Dan Ives from Wedbush noted that concerns among investors and antitrust issues contributed to the deal’s collapse. Google faces ongoing antitrust scrutiny, recently concluding one of its cases with the Department of Justice.
Ives indicated that the failure of this acquisition could have far-reaching consequences across the tech sector, and he anticipates that Google will continue to enhance its cybersecurity offerings. He also suggested that Microsoft may seize the opportunity to expand its cybersecurity capabilities over the next 12 to 18 months, highlighting a need for consolidation within the cybersecurity industry.
The spotlight recently fell on Microsoft due to the significant global IT outage caused by a flawed update to its cybersecurity software from CrowdStrike. This incident impacted numerous Microsoft users and disrupted various sectors, raising questions about the company’s cybersecurity robustness.
Despite Ives affirming CrowdStrike’s status as a leading cybersecurity provider, the incident suggests that Microsoft should consider bolstering its cybersecurity efforts, and the failed Google-Wiz deal may pave the way for future opportunities.