Wiz’s decision to decline Google’s acquisition offer could significantly impact Microsoft, according to analysts. Google aimed to acquire the Israeli cybersecurity startup Wiz for $23 billion, but on Tuesday, Wiz’s CEO Assaf Rappaport announced the rejection, citing the company’s goal to grow revenue to $1 billion annually and pursue an initial public offering.
This acquisition would have enhanced Google’s cybersecurity capabilities, especially following a major outage caused by CrowdStrike, a key player in the industry, just last week. Wedbush analyst Dan Ives noted that investor concerns and ongoing antitrust issues played a role in the collapse of the deal. Google has faced heightened scrutiny under antitrust laws and recently concluded one of two significant trials initiated by the Department of Justice.
Ives suggested that the failure of the Wiz deal may have broader consequences across the tech sector, although he believes Google will persist in expanding its cybersecurity initiatives. He also anticipates that Microsoft may look to strengthen its cybersecurity platform in the next 12 to 18 months due to the ongoing need for consolidation in the sector.
Microsoft has been under scrutiny after a widespread IT outage attributed to a faulty update in CrowdStrike’s cybersecurity software, which is utilized by Windows to safeguard against hacking attempts. This incident led to significant disruptions for businesses and government operations globally, highlighting the vulnerabilities in Microsoft’s cybersecurity measures and reinforcing the idea that the company needs to enhance its capabilities further, especially in light of Google’s failed acquisition attempt.