Wiz’s decision to decline Google’s acquisition offer has significant implications for the tech industry, particularly for Microsoft. The Israeli cybersecurity startup was poised to be acquired by Google for $23 billion, but Wiz CEO Assaf Rappaport announced that the company will continue to focus on its goal of reaching $1 billion in annual revenue and pursuing an initial public offering (IPO).
This acquisition would have enhanced Google’s cybersecurity capabilities, especially after a recent major outage caused by CrowdStrike, a competitor in the cyber industry. Wedbush analyst Dan Ives noted that concerns from investors and ongoing antitrust scrutiny contributed to the deal’s collapse. Google has faced intense regulatory pressure in recent years and recently concluded a trial linked to the Department of Justice.
Ives mentioned that the fallout from this failed deal will likely impact the broader sector, but he believes Google will continue to invest in expanding its cybersecurity initiatives. Similarly, Microsoft may also look to strengthen its own cybersecurity offerings in the next year or so.
The recent outage caused by a faulty update in CrowdStrike’s software, which affected Microsoft’s systems, underscored the need for improved cybersecurity measures. While Ives still regards CrowdStrike as a leading player in cybersecurity, the incident suggests a potential opportunity for Microsoft to bolster its cybersecurity business in light of Google’s deal reversal.