Wiz’s decision to walk away from a potential $23 billion acquisition by Google is expected to have significant implications for the tech industry, particularly Microsoft. The Israeli cybersecurity startup opted to decline the offer as it aims to reach $1 billion in annual revenue and pursue an initial public offering.
This acquisition would have strengthened Google’s presence in cybersecurity, especially following a recent major outage caused by cybersecurity company CrowdStrike, which raised concerns within the industry. Dan Ives, an analyst at Wedbush, pointed out that worries about investor sentiment and antitrust issues contributed to the deal’s collapse, noting that Google has been under scrutiny from regulators and recently concluded a trial related to antitrust matters.
Ives indicated that the failed acquisition will have ripple effects across the sector and suggested that Google will continue its focus on expanding its cybersecurity initiatives. Similarly, he believes Microsoft may seek to enhance its cybersecurity platform in the coming year, especially after experiencing a problematic global IT outage linked to a faulty update from CrowdStrike. This incident disrupted operations across various sectors, raising questions about cybersecurity resilience.
Ives acknowledged CrowdStrike’s reputation as a leading player in cybersecurity, but he emphasized that the recent outage indicates Microsoft might need to bolster its own cybersecurity capabilities, creating further opportunities following the Wiz deal’s failure.