Wiz’s decision to back out of a potential deal with Google, which would have been the company’s largest acquisition at $23 billion, could significantly affect Microsoft and the broader tech industry. Wiz CEO Assaf Rappaport stated that rejecting Google’s offer was a difficult choice, as the company aims to achieve $1 billion in annual revenue and pursue an IPO.
The failed acquisition would have enhanced Google’s cybersecurity sector, particularly after a major outage due to a glitch in CrowdStrike’s software that impacted the cyber landscape last week. Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust issues led to the collapse of the deal. Google has faced considerable scrutiny regarding antitrust matters and has just concluded a significant trial related to these concerns.
Ives highlighted that the failure of the Wiz acquisition would likely have widespread implications within the tech sphere. He anticipates that Google will continue to increase its cybersecurity initiatives, and Microsoft may follow suit by seeking to strengthen its own cybersecurity offerings in the next year to 18 months.
Microsoft recently faced criticism due to a global IT outage linked to a problematic update from CrowdStrike, which uses its software to prevent cyber threats on Windows systems. The incident caused widespread disruption, leading to errors known as “blue screens of death” and affected numerous sectors, including businesses and government operations. Although Ives still regards CrowdStrike as a leader in cybersecurity, the recent issues may prompt Microsoft to enhance its cybersecurity strategies, especially following Google’s deal failure.