Wiz’s decision to turn down Google’s $23 billion acquisition offer has significant implications for the tech industry, particularly for Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, opted to pursue its own growth strategy aimed at achieving $1 billion in annual revenue and an initial public offering, rather than accepting Google’s bid.
This acquisition would have strengthened Google’s cybersecurity division, especially following a recent major outage experienced by CrowdStrike, a key player in the industry. Analyst Dan Ives from Wedbush pointed out that the deal’s collapse stemmed from investor concerns and antitrust issues that continue to surround Google. The tech giant recently concluded a trial related to one of the two major antitrust cases brought against it by the Department of Justice.
Ives noted the potential ripple effects across the sector due to the deal’s failure and indicated that Google would likely continue to expand its cybersecurity operations despite this setback. He also suggested that Microsoft may seek to enhance its own cybersecurity platform within the next 12 to 18 months, as consolidation in the sector appears overdue.
Microsoft faced scrutiny after a problematic update to its cybersecurity software provided by CrowdStrike led to a widespread global IT outage. Users reported encountering significant issues, including the infamous “blue screens of death,” impacting businesses, air travel, and government functions. While Ives maintains that CrowdStrike remains a top player in cybersecurity, the recent incident highlights the need for Microsoft to strengthen its cybersecurity offerings, making the failed Wiz deal an even more pressing concern.