Wiz’s decision to withdraw from a potential acquisition by Google could significantly impact Microsoft and the broader tech industry.
Google had planned to acquire the Israeli cybersecurity company Wiz for $23 billion, but the deal was rejected by Wiz’s CEO Assaf Rappaport. He stated that it was a challenging choice aimed at allowing Wiz to focus on achieving $1 billion in annual revenue and preparing for an initial public offering (IPO).
This acquisition would have strengthened Google’s cybersecurity division, especially following a recent major outage caused by CrowdStrike, a prominent player in the industry. Analyst Dan Ives from Wedbush indicated that investor concerns and ongoing antitrust scrutiny led to the failure of the deal. Google is currently facing significant scrutiny from regulators and just completed one of the two主要的反垄断案件by the Department of Justice.
Ives suggested that the failure of the deal would create ripple effects across the tech sector. He expects Google to continue expanding its cybersecurity capabilities, as well as Microsoft. He noted that there has been a lack of consolidation in the cybersecurity field and anticipates that Microsoft will seek to enhance its cybersecurity platform within the next 12 to 18 months.
Microsoft’s reputation was recently challenged during a widespread global IT outage linked to a problematic update in its cybersecurity software provided by CrowdStrike. This incident caused considerable disruption, leading to reports of “blue screens of death” among users and impacting various sectors including businesses and government operations.
Despite the recent failure of Google’s acquisition attempt, Ives believes that there are further opportunities for Microsoft to strengthen its cybersecurity offerings amid the industry’s evolving landscape.