Wiz’s decision to reject Google’s $23 billion acquisition proposal could have significant consequences for the tech sector, particularly for Microsoft. The Israeli cybersecurity startup chose not to accept the deal, with CEO Assaf Rappaport citing a commitment to pursue organic growth towards achieving $1 billion in annual revenue and planning for an IPO.
This acquisition would have strengthened Google’s position in cybersecurity, especially following a major disruption caused by CrowdStrike last week. Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust issues contributed to the collapse of the acquisition talks. Google has faced significant scrutiny from regulators and recently concluded a major trial related to antitrust claims.
Ives indicated that the failure of this deal will lead to ripple effects throughout the industry. He anticipates that Google will continue to invest in enhancing its cybersecurity capabilities, and Microsoft is also expected to pursue similar strategies.
He suggested that the cybersecurity sector is ripe for consolidation, predicting that Microsoft may seek to strengthen its own cybersecurity offerings over the next 12 to 18 months. Microsoft recently experienced negative attention due to a global IT outage linked to a faulty update in CrowdStrike’s cybersecurity software, which impacted operations for numerous users worldwide. Although Ives maintains that CrowdStrike remains a leader in cybersecurity, he emphasized that the recent incident underscores the need for Microsoft to enhance its cybersecurity portfolio, especially given the opportunity created by Google’s abandoned acquisition.