Wiz’s decision to walk away from a potential $23 billion acquisition by Google could significantly impact the technology sector, particularly Microsoft.
Wiz, an Israeli cybersecurity startup, declined Google’s offer, with CEO Assaf Rappaport emphasizing the company’s commitment to pursuing an ambitious revenue target of $1 billion annually and eventually going public.
The acquisition would have enhanced Google’s cybersecurity capabilities just as the industry faced a major disruption due to a recent global IT outage linked to CrowdStrike. Wedbush analyst Dan Ives noted that the breakdown of the deal stemmed from investor unease and ongoing antitrust challenges facing Google, which is currently navigating multiple legal investigations.
Ives suggested that the failed acquisition would have broad repercussions across the industry. He predicted that Google would intensify its focus on expanding its cybersecurity offerings, a trend echoed by Microsoft as well.
Ives also mentioned that consolidation in the cybersecurity sector is overdue and indicated that Microsoft might seek to strengthen its own cybersecurity solutions in the next year to 18 months.
The recent global IT outage, caused by a flawed update to CrowdStrike’s cybersecurity software, has put Microsoft under scrutiny, as users experienced system failures worldwide. While CrowdStrike is frequently regarded as a leader in cybersecurity, the incident highlights the need for Microsoft to enhance its cybersecurity capabilities further, with the collapse of the Wiz deal providing new opportunities.