The recent decision by Wiz to reject Google’s acquisition offer of $23 billion has significant implications for the tech industry, particularly for Microsoft. Wiz, an Israeli cybersecurity startup, turned down the offer in order to focus on achieving $1 billion in annual revenue and prepare for an initial public offering, according to CEO Assaf Rappaport.
This deal would have enhanced Google’s cybersecurity capabilities amidst heightened concerns in the sector, particularly following a major outage caused by CrowdStrike, a leading cybersecurity firm, last week. Analyst Dan Ives from Wedbush noted that investor apprehensions and ongoing antitrust issues contributed to the deal’s collapse. Google has faced increased scrutiny from antitrust regulators, recently concluding a trial related to its business practices.
Ives suggested that the fallout from this deal will reverberate throughout the tech sector and indicated that Google is likely to intensify efforts to expand its cybersecurity operations despite the setback. Similarly, he pointed out that Microsoft may take this opportunity to enhance its cybersecurity offerings over the next 12 to 18 months.
Microsoft was adversely affected by the CrowdStrike outage, which resulted from a problematic software update, leading to widespread reports of system failures among its users and disruptions across various sectors, including business and government. While Ives still considers CrowdStrike a benchmark in cybersecurity, the incident highlights the need for Microsoft to strengthen its security measures, an opportunity that is now more critical following the dissolution of the Google-Wiz deal.