Wiz’s Bold Move: What It Means for Google’s Cybersecurity and Microsoft’s Future

Wiz’s decision to decline Google’s offer could significantly affect Microsoft and the broader tech industry. The Israeli cybersecurity startup had been in negotiations to be acquired by Google for $23 billion, but on Tuesday, Wiz CEO Assaf Rappaport announced the company would not proceed with the deal to focus on achieving a revenue target of $1 billion and pursuing an initial public offering.

This acquisition would have enhanced Google’s cybersecurity division, especially following a significant outage attributed to CrowdStrike, a major player in the field. Analyst Dan Ives from Wedbush pointed out that investor apprehensions and ongoing antitrust investigations were likely factors leading to the deal’s collapse. Google has been under considerable scrutiny regarding its business practices and recently concluded a trial concerning antitrust claims from the Department of Justice.

Ives noted that the failed acquisition could have broader consequences within the cybersecurity sector, suggesting that Google will continue to invest in expanding its cybersecurity capabilities. Moreover, he anticipates Microsoft will also look to strengthen its cybersecurity offerings in the next 12 to 18 months.

Amidst this backdrop, Microsoft found itself facing criticism after a global IT outage linked to a flawed update from CrowdStrike, affecting numerous businesses and services worldwide. While Ives maintains that CrowdStrike remains a top-tier provider in cybersecurity, the recent incident may prompt Microsoft to reevaluate its strategies in this area, and the missed opportunity with Wiz makes that prospect even more pressing.

Popular Categories


Search the website