Wiz’s decision to reject Google’s $23 billion acquisition offer could have significant ramifications for the tech sector, particularly affecting Microsoft. The Israeli cybersecurity startup, led by CEO Assaf Rappaport, opted not to move forward with the deal in order to focus on achieving $1 billion in annual revenue and preparing for an initial public offering.
Google’s purchase of Wiz was expected to enhance its cybersecurity offerings, especially following a recent major outage caused by CrowdStrike, a leading player in the cybersecurity industry. Wedbush analyst Dan Ives highlighted that investor skepticism and ongoing antitrust issues contributed to the deal’s collapse. Google has faced heightened antitrust scrutiny and recently concluded a trial related to one of two major cases brought by the Department of Justice.
Ives noted potential ripple effects across the tech industry due to the failed acquisition and anticipated that Google would continue to prioritize expanding its cybersecurity capabilities. This sentiment extends to Microsoft as well, with Ives suggesting that the software giant may seek to strengthen its cybersecurity platform in the next 12 to 18 months.
Amidst this context, Microsoft recently dealt with a significant global IT outage linked to CrowdStrike’s faulty software update, impacting users worldwide and raising questions about its cybersecurity measures. Although Ives maintains that CrowdStrike remains the benchmark for cybersecurity, the outage may indicate that Microsoft needs to enhance its defenses, especially with the doors opening wider following Google’s failed deal.