Wiz’s decision to decline Google’s acquisition offer could significantly impact Microsoft and the tech industry as a whole. Google was aiming to acquire the Israeli cybersecurity startup Wiz for $23 billion, but the offer was rejected by Wiz CEO Assaf Rappaport. The CEO stated that the choice was difficult but necessary for Wiz to pursue its goal of reaching $1 billion in annual revenue and preparing for an initial public offering (IPO).
This acquisition would have strengthened Google’s cybersecurity endeavors, especially in light of a major outage caused by CrowdStrike—a notable player in the cybersecurity space—just days prior. Analyst Dan Ives from Wedbush pointed out that this deal’s collapse was influenced by investor concerns and ongoing antitrust issues surrounding Google, which is facing heightened scrutiny and recently concluded a significant trial linked to these concerns.
Ives suggested that the fallout from this non-deal would lead to broader implications across the cybersecurity sector. He expects Google to enhance its cybersecurity capabilities despite the failed acquisition. Microsoft, as a competitor, is also anticipated to take steps to strengthen its cybersecurity platform in the forthcoming 12 to 18 months, given the current climate.
The recent CrowdStrike outage, which affected many Microsoft users globally due to a problematic software update, has brought additional attention to the need for improved cybersecurity measures. Reports of Microsoft’s “blue screens of death” during the incident highlighted vulnerabilities for many organizations. Although Ives maintains that CrowdStrike remains the “gold standard” in cybersecurity, the recent incident indicates that Microsoft may need to bolster its cybersecurity efforts further, particularly following the missed opportunity with Wiz.