Wiz’s decision to decline a $23 billion acquisition offer from Google could significantly affect the technology sector, particularly Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, chose to reject the offer to focus on achieving $1 billion in annual revenue and preparing for an initial public offering (IPO).
This acquisition would have enhanced Google’s cybersecurity capabilities, especially following a recent major service disruption caused by CrowdStrike, a significant player in the industry. Wedbush analyst Dan Ives pointed out that the collapse of the deal was influenced by investor concerns and ongoing antitrust scrutiny facing Google, which recently concluded one of its major legal trials with the Department of Justice.
Ives noted that the failure of the deal is likely to cause “ripple impacts” throughout the technology sector. He predicts that Google will continue to invest in expanding its cybersecurity initiatives despite missing out on Wiz, and he anticipates that its competitor Microsoft will also seek to strengthen its cybersecurity offerings in the upcoming months.
The recent CrowdStrike outage, which affected numerous Microsoft users worldwide by leading to significant disruptions, highlighted vulnerabilities in Microsoft’s cybersecurity framework. While Ives still regards CrowdStrike as the leading name in cybersecurity, he suggested that the recent incident underscores the potential benefits for Microsoft to enhance its security strategies further, especially following Google’s failed attempt to acquire Wiz.