Wiz’s decision to decline Google’s acquisition offer could significantly impact Microsoft and the broader tech sector.
The anticipated acquisition of Israeli cybersecurity startup Wiz by Google for $23 billion will not proceed. Wiz CEO Assaf Rappaport stated that the decision was challenging but necessary for the company to focus on reaching $1 billion in annual revenue and to pursue an initial public offering (IPO).
This development comes after a major cybersecurity incident involving CrowdStrike, which caused widespread outages in the tech industry. Following the announcement of Wiz’s decision, Wedbush analyst Dan Ives highlighted that investor apprehensions and ongoing antitrust challenges were factors that contributed to the collapse of the deal. Google has been under substantial scrutiny regarding antitrust issues and recently concluded one of its trials from the Department of Justice.
Ives emphasized the potential ripple effects from the failed acquisition throughout the tech sector, predicting that Google will likely intensify its efforts to expand its cybersecurity initiatives. He also suggested that Microsoft may seek to enhance its cybersecurity platform over the next year to 18 months in response to these developments.
The spotlight turned on Microsoft recently during a significant global IT outage caused by a faulty update in CrowdStrike’s cybersecurity software, which crippling operations for numerous users worldwide. Although Ives maintains that CrowdStrike is a leading figure in cybersecurity, the incident may prompt Microsoft to strengthen its own cybersecurity capabilities, further incentivized by Google’s halted acquisition of Wiz.