Wiz’s decision to turn down Google’s acquisition offer could significantly affect Microsoft and the broader tech industry. Google had aimed to acquire the Israeli cybersecurity firm Wiz for $23 billion, but Wiz CEO Assaf Rappaport stated on Tuesday that the company is focused on growing its revenue towards $1 billion and pursuing an initial public offering instead.
This deal would have enhanced Google’s cybersecurity capabilities especially following a recent major outage linked to CrowdStrike, a leading cybersecurity provider. Wedbush analyst Dan Ives highlighted that investor worries and antitrust challenges played a key role in the collapse of the acquisition. Google has faced increasing antitrust scrutiny and recently concluded a major trial with the Department of Justice.
Ives noted that the failure of this acquisition could lead to widespread effects in the tech sector. He speculated that Google would continue to invest heavily in expanding its cybersecurity operations. Similarly, he anticipated that Microsoft may seek to bolster its cybersecurity offerings in the next 12 to 18 months.
Microsoft recently faced backlash due to a global IT outage stemming from a problematic update to its cybersecurity software from CrowdStrike, leading to disruptions in businesses and essential services. Although Ives referred to CrowdStrike as the “gold standard” in cybersecurity, the incident indicated a potential area for Microsoft to strengthen its cybersecurity capabilities, a need that may increase following Google’s unsuccessful deal with Wiz.