Wiz’s decision to back out of a deal with Google, which would have been the company’s largest acquisition at $23 billion, is set to have significant repercussions in the technology sector, particularly for Microsoft.
Wiz CEO Assaf Rappaport explained that the company opted to decline Google’s offer to focus on achieving an annual revenue goal of $1 billion and preparing for an IPO. This acquisition, if it had proceeded, would have strengthened Google’s cybersecurity capabilities, especially in light of a recent significant outage linked to CrowdStrike, a major player in the industry.
Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust issues contributed to the collapse of the agreement. Google has faced intense scrutiny regarding its market practices, culminating in a recent DOJ trial regarding its operations.
Ives expressed that the failure of the Wiz deal will have far-reaching consequences within the cybersecurity sector. He anticipates that Google will aggressively pursue growth in its cybersecurity division despite the setback, and he predicts Microsoft will also look to enhance its own cybersecurity offerings in the coming months.
The spotlight recently fell back on Microsoft, albeit under unfavorable circumstances, due to a widespread IT outage caused by a problematic update to cybersecurity software from CrowdStrike. This incident disrupted numerous businesses and government operations globally, prompting feedback from users who experienced technical failures.
Although Ives acknowledged CrowdStrike’s strong reputation in cybersecurity, he suggested that the outage highlights the necessity for Microsoft to bolster its cyber defense capabilities, a need that has become even more apparent following the failed Wiz acquisition.