Wiz’s decision to decline Google’s acquisition offer could significantly impact Microsoft and the broader tech sector.
Google had approached Israeli cybersecurity startup Wiz with a $23 billion offer, which Wiz CEO Assaf Rappaport ultimately turned down, stating the need to focus on growing the company’s revenue to $1 billion and preparing for an initial public offering (IPO).
This acquisition would have enhanced Google’s position in cybersecurity, particularly following a major outage linked to CrowdStrike that affected the industry last week. Analyst Dan Ives from Wedbush noted that antitrust issues and investor concerns contributed to the collapse of the deal. Google has been under heightened antitrust scrutiny and recently concluded a key trial related to these challenges.
Ives predicted that the failed acquisition will have “ripple impacts” throughout the tech industry. He suggested that Google will continue to enhance its cybersecurity offerings despite the setback. Similarly, Microsoft is likely to pursue efforts to strengthen its cybersecurity platform in the next year to 18 months.
The context for this is heightened scrutiny around cybersecurity; Microsoft faced criticism after a widespread IT outage caused by a problematic update from CrowdStrike, which disrupted various sectors globally. While CrowdStrike remains a leader in the field, the incident highlights the need for Microsoft to bolster its cybersecurity capabilities, which the failed Google-Wiz deal potentially makes more urgent.