Wiz’s decision to decline Google’s acquisition offer could have significant repercussions for Microsoft and the broader tech industry. The Israeli cybersecurity startup turned down a $23 billion proposal from Google, as its CEO Assaf Rappaport expressed a commitment to developing Wiz into a billion-dollar revenue company with plans for an initial public offering.
This deal, which would have strengthened Google’s cybersecurity division, was especially timely following a recent severe outage at CrowdStrike that impacted the cyber landscape. Wedbush analyst Dan Ives suggested that concerns from investors and ongoing antitrust matters contributed to the deal’s collapse, as Google has been under increasing scrutiny from regulators.
Ives noted that the failure of this acquisition will likely lead to broader effects across the cybersecurity sector. He anticipates that Google will continue to focus on enhancing its cybersecurity initiatives, a path Microsoft is expected to follow as well. Ives predicts that consolidation within the cybersecurity industry is overdue, indicating Microsoft may seek to enhance its own cybersecurity offerings in the next 12 to 18 months.
Microsoft faced criticism recently due to a widespread global IT outage linked to a faulty update from CrowdStrike, which disrupted various operations worldwide. The incident highlighted vulnerabilities within Microsoft’s system and reinforced the necessity for enhancing its cybersecurity strategies, a need further emphasized by the collapse of the Wiz acquisition.