Wiz’s decision to turn down Google’s acquisition offer could significantly impact Microsoft and the broader tech industry. Google’s plan to acquire the Israeli cybersecurity firm Wiz for $23 billion was halted when Wiz’s CEO, Assaf Rappaport, opted to focus on growing the company towards a billion-dollar annual revenue and preparing for an IPO.
This acquisition would have strengthened Google’s cybersecurity division, particularly following a major outage linked to cybersecurity firm CrowdStrike that affected numerous businesses and operations last week. Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust scrutiny were key factors in the deal’s collapse. Google has faced intense antitrust reviews recently, having just concluded a trial related to one of two significant cases brought by the Department of Justice.
Ives indicated that the fallout from this deal not taking place would trigger broader effects across the cybersecurity sector. He suggested that Google would likely intensify its efforts to expand its cybersecurity initiatives despite the failed acquisition, and Microsoft might follow suit.
Ives proposed that consolidation within the cybersecurity field is overdue and predicted that Microsoft could seek to enhance its cybersecurity offerings in the next 12 to 18 months. Microsoft’s reputation took a hit due to a global IT outage stemming from an update issue with CrowdStrike, highlighting vulnerabilities in its cybersecurity measures. While Ives still views CrowdStrike as the leading figure in cybersecurity, the recent events emphasize the need for Microsoft to strengthen its security framework, leaving opportunities open following Google’s unsuccessful bid for Wiz.