Wiz’s decision to walk away from Google’s proposed $23 billion acquisition could have significant ramifications for the tech landscape, particularly for Microsoft.
The Israeli cybersecurity startup, led by CEO Assaf Rappaport, turned down Google’s offer to remain focused on achieving an annual revenue target of $1 billion and pursuing an initial public offering (IPO). This acquisition would have strengthened Google’s cybersecurity capabilities, especially in light of recent concerns following a major outage linked to CrowdStrike, a key player in the industry.
Wedbush analyst Dan Ives highlighted that the collapse of this deal stems from investor concerns and ongoing antitrust scrutiny facing Google, which just concluded a trial regarding two significant cases initiated by the Department of Justice.
Ives noted that the failure to secure Wiz could disrupt the entire sector, stating that Google is likely to continue investing in its cybersecurity initiatives despite this setback. Similarly, he anticipates that Microsoft may also look to strengthen its cybersecurity offerings in the coming 12 to 18 months.
The recent issues attributed to CrowdStrike have put Microsoft in a difficult position, as the company’s cybersecurity software update led to a widespread global IT outage. This situation has prompted discussions about Microsoft’s need to enhance its cybersecurity strategies, particularly with the added pressure from Google’s failed acquisition attempt.