Wiz’s decision to walk away from a potential $23 billion acquisition by Google could significantly impact the tech landscape, especially concerning Microsoft.
The Israeli cybersecurity firm Wiz, led by CEO Assaf Rappaport, rejected Google’s offer to focus on its growth, aiming for $1 billion in annual revenue and preparing for an initial public offering (IPO). This acquisition would have strengthened Google’s cybersecurity sector, particularly in light of a recent major outage from CrowdStrike, which sent shockwaves through the industry.
Wedbush analyst Dan Ives explained that investor apprehensions and antitrust challenges were key factors in the deal’s collapse. Google has faced intense scrutiny over antitrust issues and recently concluded a trial related to a major case from the Department of Justice.
Ives noted that the fallout from this failed acquisition could resonate throughout the cybersecurity field. He anticipates that Google will continue to aggressively expand its cybersecurity division despite losing Wiz. Similarly, he speculates that Microsoft may pursue its own consolidation efforts to enhance its cybersecurity platform in the next 12 to 18 months.
The narrative surrounding Microsoft has shifted recently following a widespread IT outage caused by a faulty software update from CrowdStrike, which disrupted numerous operations worldwide. Despite Ives maintaining that CrowdStrike remains a leading name in cybersecurity, the incident highlights the necessity for Microsoft to enhance its cybersecurity capabilities, a sentiment amplified by Google’s failed acquisition attempt.