Wiz’s decision to reject Google’s $23 billion acquisition offer could have significant repercussions for the tech industry, particularly for Microsoft.
The Israeli cybersecurity startup, which aimed to reach $1 billion in annual revenue and pursue an initial public offering, chose to remain independent, as stated by CEO Assaf Rappaport. This decision comes in the wake of a significant outage caused by cybersecurity giant CrowdStrike, which heightened the focus on security in the tech sector.
Wedbush analyst Dan Ives noted that investor concerns and ongoing antitrust issues contributed to the collapse of the deal. Google has faced substantial antitrust scrutiny and recently concluded a major trial initiated by the Department of Justice.
Ives emphasized that the failure of this deal could result in widespread effects across the cybersecurity landscape. He anticipates that Google will continue to expand its cybersecurity efforts despite losing the Wiz acquisition. Meanwhile, he expects Microsoft to consider strengthening its own cybersecurity platform in the next 12 to 18 months.
The recent global IT outage linked to a faulty update from CrowdStrike, which caused problems for Microsoft users, highlighted the need for improved cybersecurity solutions. While Ives maintains that CrowdStrike remains a benchmark in cybersecurity, the incident indicates that Microsoft may need to enhance its security measures further, creating additional opportunities in the wake of Google’s failed deal.