Wiz’s decision to reject Google’s $23 billion acquisition offer could significantly impact the tech industry, particularly concerning Microsoft.
Wiz, an Israeli cybersecurity startup, has opted to forgo what would have been Google’s largest acquisition, with CEO Assaf Rappaport stating that the difficult decision was made to focus on building Wiz toward generating $1 billion in annual revenue and preparing for an initial public offering.
This acquisition would have enhanced Google’s cybersecurity capabilities, especially following a recent major outage linked to CrowdStrike, an industry leader, which raised concerns about cybersecurity reliability. Following the rejection of the deal, Wedbush analyst Dan Ives indicated that the collapse was influenced by investor apprehensions and ongoing antitrust issues faced by Google, which has been under significant scrutiny from regulators.
Ives noted that the failure of this deal could create ripple effects across the cybersecurity sector. He highlighted that despite the setback with Wiz, Google is likely to continue expanding its cybersecurity efforts, a move that Microsoft will also embrace.
IvesForecasts that Microsoft may seek to strengthen its cybersecurity platform over the next 12 to 18 months, as the company has recently faced negative attention due to a widespread IT outage related to a flawed update in CrowdStrike’s software. Users of Microsoft’s Windows operating system experienced significant disruptions, hinting at a pressing need for the tech giant to enhance its cybersecurity measures.
While Ives still regards CrowdStrike as a leading figure in cybersecurity, this incident underscores the necessity for Microsoft to bolster its own security offerings, especially with Google’s failed acquisition creating further opportunities in the market.