Wiz’s decision to walk away from a potential $23 billion acquisition by Google could significantly impact the tech sector, particularly Microsoft.
Wiz CEO Assaf Rappaport announced on Tuesday that the company would not accept Google’s offer, choosing instead to focus on achieving an annual revenue of $1 billion and pursuing an initial public offering (IPO). This decision comes after a turbulent period for the tech industry, highlighted by a massive outage at cybersecurity firm CrowdStrike last week.
According to Wedbush analyst Dan Ives, investor trepidation and ongoing antitrust issues played critical roles in the breakdown of the deal. Google has faced increased scrutiny in recent years, culminating in a trial linked to antitrust allegations by the Department of Justice.
Ives emphasized that the failed acquisition would have broader consequences across the cybersecurity landscape, suggesting that both Google and Microsoft would continue to concentrate on expanding their cybersecurity capabilities. He noted that the industry may see necessary consolidation in the coming months, with Microsoft likely seeking to enhance its cybersecurity platform over the next year or so.
The recent global IT outage associated with Microsoft’s use of CrowdStrike highlighted vulnerabilities in their cybersecurity efforts. Users experienced significant disruptions, prompting discussions about the need for Microsoft to strengthen its security measures, especially in light of the missed opportunity with Wiz.