Wiz’s decision to reject a $23 billion acquisition offer from Google could have significant repercussions for the technology sector, particularly for Microsoft.
The Israeli cybersecurity startup decided against the deal to focus on growing its revenue to $1 billion annually and preparing for an initial public offering (IPO), according to Wiz CEO Assaf Rappaport. This rejection comes at a time when the cybersecurity industry was shaken by a major outage attributed to CrowdStrike, a prominent player in the field.
Analyst Dan Ives from Wedbush indicated that the failure of the deal stemmed from investor concerns and ongoing antitrust issues surrounding Google, which is currently under close scrutiny in two significant Department of Justice cases. Ives expressed that the fallout from this decision would likely have widespread effects across the tech sector.
Despite the setback, Ives believes that Google will continue to strengthen its cybersecurity initiatives. Likewise, he anticipates that Microsoft will seek to enhance its cybersecurity platform in the near future, potentially leading to further consolidation in the cybersecurity market.
This situation has drawn attention to Microsoft, which recently faced criticism due to a global IT outage connected to a problematic update in its cybersecurity software provided by CrowdStrike. The issues led to widespread disruptions affecting businesses, flights, and government functions. Ives highlighted that although CrowdStrike remains a leading name in cybersecurity, the recent outage underscores the need for Microsoft to bolster its own cybersecurity capabilities as the landscape evolves following the dissolution of the Wiz deal.