Wiz’s decision to reject Google’s acquisition offer could have significant effects on the tech industry, particularly for Microsoft. The Israeli cybersecurity startup was in talks to be acquired by Google for $23 billion, but CEO Assaf Rappaport ultimately decided to turn down the offer to focus on growing the company towards $1 billion in revenue and preparing for an IPO.
This acquisition would have enhanced Google’s cybersecurity capabilities, especially following a recent major outage experienced by CrowdStrike, a significant player in the industry. Analyst Dan Ives from Wedbush noted that the failed deal could have ripple effects throughout the sector due to ongoing investor concerns and antitrust issues plaguing Google, which has faced intense scrutiny and recently concluded a major Department of Justice trial.
Ives highlighted that despite the setback with Wiz, Google would likely continue efforts to expand its cybersecurity division. Similarly, he suggested that Microsoft could take this opportunity to strengthen its own cybersecurity platform in the next year to 18 months.
Microsoft found itself in the spotlight due to a global IT outage related to a defective update to its cybersecurity software provided by CrowdStrike, which led to widespread disruptions across various sectors. Though Ives maintains that CrowdStrike remains a leader in cybersecurity, the incident suggests that Microsoft may need to enhance its cybersecurity measures, particularly following Google’s unsuccessful attempt to acquire Wiz.