Wiz’s decision to pull out of a potential deal with Google, which would have been the tech giant’s largest acquisition at $23 billion, could have significant repercussions for the technology sector, particularly for Microsoft.
Wiz, an Israeli cybersecurity startup, was approached by Google in hopes of enhancing its cybersecurity portfolio. However, CEO Assaf Rappaport announced the rejection of the offer to focus on growing Wiz towards a target of $1 billion in annual revenue and an initial public offering.
This decision comes after a major cybersecurity incident involving CrowdStrike, which experienced a significant outage. According to Wedbush analyst Dan Ives, concerns among investors and ongoing antitrust challenges led to the collapse of the deal. Google is currently under scrutiny for antitrust issues and recently concluded a major trial initiated by the Department of Justice.
Ives highlighted that the failure of the acquisition could have broader implications for the cybersecurity landscape. He anticipates that Google will continue to prioritize the expansion of its cybersecurity services, which may prompt rival Microsoft to pursue its own growth strategies in this sector.
The concerns about cybersecurity were heightened after a global IT outage linked to a faulty update from CrowdStrike affected many Microsoft users, resulting in widespread disruption. Although Ives maintains that CrowdStrike remains a leading cybersecurity provider, the incident suggests an opportunity for Microsoft to strengthen its own cybersecurity capabilities, particularly in light of the failed Google-Wiz deal.