Wiz’s decision to back out of a potential $23 billion acquisition by Google could have significant repercussions for the tech industry, particularly for Microsoft. Wiz, an Israeli cybersecurity startup, declined the offer to allow for continued growth towards its goal of generating $1 billion in annual revenue and pursuing an IPO.
This acquisition would have strengthened Google’s cybersecurity efforts, especially following a major outage that impacted the industry, linked to CrowdStrike. Analyst Dan Ives from Wedbush noted that concerns over investor sentiment and antitrust issues contributed to the deal’s collapse. Google has recently faced intense antitrust scrutiny and concluded a major trial with the Department of Justice.
Ives remarked that the failure of this deal could create ripple effects throughout the tech sector, suggesting that Google will likely intensify its focus on cybersecurity despite the setback. Microsoft’s position in this arena may also see changes, as Ives predicts that the company could seek to enhance its cybersecurity offerings in the next 12 to 18 months.
The situation underscores the increased need for robust cybersecurity measures, particularly after Microsoft faced a widespread IT outage due to a problem with its software supplied by CrowdStrike. Despite recognizing CrowdStrike as the leading standard in cybersecurity, the disruption highlighted the importance of reinforcing cybersecurity measures, further emphasizing the implications of the Wiz deal’s cancellation for both Google and Microsoft.