Wiz’s decision to back out of a potential $23 billion acquisition by Google could significantly impact the tech industry, particularly Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, chose to reject Google’s offer in favor of pursuing $1 billion in annual revenue and preparing for an initial public offering (IPO).
The acquisition would have strengthened Google’s position in the cybersecurity sector, especially following a recent major outage caused by CrowdStrike, another industry leader. Analyst Dan Ives from Wedbush noted that concerns over investor sentiment and ongoing antitrust issues surrounding Google contributed to the collapse of the deal. Google has faced intense scrutiny regarding its business practices and recently concluded a major trial instigated by the Department of Justice.
Ives expressed that the failure of the Wiz acquisition will have widespread effects across the tech sector and predicted that Google would intensify its efforts in expanding its cybersecurity capabilities. Similarly, he suggested that Microsoft might take advantage of this situation to enhance its own cybersecurity offerings in the next year to 18 months.
Microsoft recently found itself under scrutiny due to widespread disruptions caused by a faulty update to its cybersecurity software via CrowdStrike. This incident affected users globally, leading to criticisms amidst reports of significant operational interruptions. While Ives maintains that CrowdStrike remains a leader in the field, the recent outages underscore the need for Microsoft to enhance its cybersecurity measures, further fueled by Google’s unfulfilled acquisition intentions.