Wiz’s decision to reject Google’s acquisition offer could significantly affect Microsoft and the tech industry at large.
Google had aimed to acquire the Israeli cybersecurity firm Wiz for $23 billion, but CEO Assaf Rappaport announced on Tuesday that the company would not proceed with the deal. Rappaport described the choice as difficult, emphasizing Wiz’s goal of achieving an annual revenue of $1 billion and preparing for an IPO in the future.
This acquisition would have strengthened Google’s cybersecurity capabilities, particularly following a notable outage caused by CrowdStrike, a key player in the industry, last week. Following the news of the deal’s collapse, Wedbush analyst Dan Ives cited investor apprehension and antitrust concerns as reasons for the failure. Google has faced intense scrutiny over antitrust issues and recently concluded a trial involving the Department of Justice.
Ives noted that the decision not to finalize the deal would have “ripple effects” across the technology sector. He anticipates that Google will continue to enhance its cybersecurity efforts despite losing the opportunity with Wiz, and suggests that Microsoft may also pursue acquisitions to strengthen its cybersecurity platform in the next 12 to 18 months.
The focus on cybersecurity has intensified for Microsoft, particularly after the widespread IT outage related to CrowdStrike’s software last Friday. Users around the globe experienced disruptions, highlighting the need for Microsoft to enhance its cybersecurity measures. While Ives still regards CrowdStrike as a leader in the field, the recent incident may indicate that both Google and Microsoft need to bolster their cybersecurity capabilities.