Wiz’s decision to back out of a potentially transformative $23 billion acquisition by Google could have significant repercussions for the tech industry, particularly for Microsoft.
Wiz, an Israeli cybersecurity startup, declined Google’s offer, with CEO Assaf Rappaport citing a desire to focus on building the company towards achieving $1 billion in annual revenue and ultimately an initial public offering (IPO). This move comes at a time when Google’s effort to strengthen its cybersecurity operations was underscored by a recent major outage affecting the industry, linked to CrowdStrike.
Wedbush analyst Dan Ives pointed out that investor apprehensions and antitrust challenges hindered the deal. Google has faced increased scrutiny from regulators and recently concluded a trial involving one of two major antitrust cases from the Department of Justice.
Ives indicated that the failure of this deal could create ripple effects throughout the cybersecurity sector. He noted that Google is expected to continue expanding its cybersecurity initiatives despite the setback with Wiz. Microsoft, too, may look to enhance its cybersecurity offerings in the coming months.
While CrowdStrike continues to be viewed as a leader in cybersecurity, a recent widespread IT outage due to a problematic update has raised questions about the need for Microsoft to strengthen its own platform. This setback for Google could pave the way for Microsoft to take more aggressive action in the cybersecurity realm.