Wiz’s decision to back out of a potential $23 billion acquisition by Google could have significant ramifications for the tech industry, especially for Microsoft.
Wiz, an Israeli cybersecurity startup, declined Google’s offer, with CEO Assaf Rappaport stating that the decision was difficult but necessary to focus on achieving $1 billion in annual revenue and preparing for an IPO. This move comes shortly after a substantial outage in the cybersecurity sector caused by a major incident at CrowdStrike.
Wedbush analyst Dan Ives noted that the failed acquisition raised concerns among investors and highlighted ongoing antitrust issues facing Google, which has been under intense scrutiny and recently concluded a significant trial with the Department of Justice. In his assessment, Ives indicated that the fallout from this deal not materializing will ripple across the industry.
Despite the setback, he suggested that Google would likely continue to strengthen its cybersecurity efforts. At the same time, Microsoft may also seek to enhance its cybersecurity platform in the coming months, as there is an impending need for consolidation within the sector.
Microsoft found itself in a challenging light recently when a worldwide IT outage linked to CrowdStrike’s cybersecurity software disrupted operations globally, highlighting vulnerabilities even for major platforms like Windows. While Ives acknowledged CrowdStrike as a leading figure in cybersecurity, the incident underlined the necessity for Microsoft to bolster its cybersecurity services, a sentiment reinforced by Wiz’s decision to forgo the Google acquisition.