Wiz’s decision to reject Google’s $23 billion acquisition offer could significantly impact the tech industry, particularly Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, opted against the deal, choosing instead to focus on achieving $1 billion in annual revenue and preparing for an eventual IPO.
This acquisition would have strengthened Google’s cybersecurity division, especially following a recent widespread outage linked to CrowdStrike, a key player in the industry. Wedbush analyst Dan Ives noted that the failure of this deal stemmed from investor concerns and antitrust hurdles facing Google, which has faced increased scrutiny and has recently completed a trial related to major antitrust cases brought by the Department of Justice.
Ives emphasized that the collapse of the Wiz acquisition will have wider repercussions throughout the sector. He anticipates that Google will continue to invest in expanding its cybersecurity capabilities, a path likely mirrored by Microsoft.
Ives suggests that there is a pressing need for consolidation within the cybersecurity field and predicts that Microsoft may pursue acquisitions to enhance its cybersecurity offerings in the next 12 to 18 months. Recently, Microsoft found itself at the center of adverse attention due to a global IT outage triggered by a problematic update from CrowdStrike, which disrupted various sectors, including businesses and government operations.
Although Ives still regards CrowdStrike as the leading standard in cybersecurity, the outage indicates a potential advantage for Microsoft to strengthen its cybersecurity business, further emphasized by Google’s failed acquisition attempt.