Wiz’s decision to reject Google’s offer could significantly impact Microsoft and the broader tech landscape. Google had aimed to acquire the Israeli cybersecurity startup for $23 billion, but Wiz CEO Assaf Rappaport announced on Tuesday that the company will focus on achieving $1 billion in annual revenue and a potential IPO instead.
The failed acquisition would have enhanced Google’s cybersecurity division, particularly after a major service disruption linked to CrowdStrike, a significant player in the cybersecurity field, occurred last week. Wedbush analyst Dan Ives noted that investor worries and antitrust challenges contributed to the deal’s collapse. Google has faced extensive scrutiny regarding antitrust issues and recently concluded a trial related to a major case with the Department of Justice.
Ives expressed that the failure of the Wiz acquisition will have wider ramifications across the tech sector, suggesting that Google is likely to intensify its efforts in cybersecurity regardless. Microsoft, too, may feel compelled to enhance its cybersecurity offerings in response to this development.
Ives anticipates that Microsoft could pursue further consolidation in the cybersecurity space in the next 12 to 18 months. This comes on the heels of a troubling global IT outage related to a faulty update from CrowdStrike, which affected Microsoft users worldwide and raised concerns about the effectiveness of its cybersecurity measures. While Ives maintains that CrowdStrike remains a leader in cybersecurity, the incident may prompt Microsoft to strengthen its own cybersecurity capabilities, especially with the opportunity left by Google’s abandoned acquisition.