Wiz’s decision to walk away from a potential $23 billion acquisition by Google could significantly impact the tech sector, particularly for Microsoft.
Wiz, an Israeli cybersecurity startup, turned down Google’s offer, with CEO Assaf Rappaport citing the company’s ambition to reach $1 billion in annual revenue and pursue an initial public offering as reasons for the choice. Google’s attempt to acquire Wiz was seen as a move to enhance its cybersecurity division, especially after the recent disruption caused by an outage at cybersecurity firm CrowdStrike.
Wedbush analyst Dan Ives noted that concerns about antitrust issues and investor sentiment contributed to the collapse of the deal. Google is currently under scrutiny for antitrust matters, having recently concluded a trial involving the Department of Justice.
Ives suggested that the fallout from the Wiz decision could have widespread effects across the tech sector. He believes Google will persist in enhancing its cybersecurity capabilities despite losing out on Wiz. Similarly, he anticipates that Microsoft will consider acquisitions to strengthen its cybersecurity offerings over the next year or so.
The recent CrowdStrike outage, which affected Microsoft users worldwide, underscored the need for bolstered cybersecurity measures. While Ives reaffirmed CrowdStrike’s reputation as a leading cybersecurity provider, the incident may indicate that Microsoft must enhance its cybersecurity solutions, and the collapse of the Wiz deal could provide further opportunities for such developments.