Wiz’s decision to reject Google’s acquisition offer could significantly impact Microsoft and the broader tech sector.
Google had aimed to acquire the Israeli cybersecurity firm Wiz for $23 billion, but Wiz CEO Assaf Rappaport announced on Tuesday that he opted to decline the offer. He explained that the choice was difficult, as Wiz aims to grow its revenue to $1 billion annually and prepare for an initial public offering.
This acquisition would have strengthened Google’s cybersecurity capabilities, particularly following a recent major outage linked to CrowdStrike, a key player in the industry. In light of the failed deal, Wedbush analyst Dan Ives noted that concerns from investors and ongoing antitrust challenges led to its collapse. Google has faced significant scrutiny regarding its market practices and recently concluded a trial related to one of the Department of Justice’s high-profile cases.
Ives suggested that the absence of the Wiz deal would have far-reaching effects across the tech landscape. Despite the setback, he believes Google will likely continue to focus on expanding its cybersecurity initiatives, a move also anticipated by Microsoft as it seeks to enhance its own cybersecurity offerings in the coming 12 to 18 months.
Microsoft recently faced negative attention following a widespread global IT outage caused by a flawed update to its cybersecurity software provided by CrowdStrike. Reports indicated that Microsoft’s users encountered severe disruptions, affecting various sectors including business, travel, and government services.
While Ives still views CrowdStrike as a leading name in cybersecurity, the recent outage highlights a potential opportunity for Microsoft to strengthen its cybersecurity portfolio, especially with Google’s failure to secure Wiz as a partnership.