Wiz’s decision to decline Google’s acquisition offer could significantly impact Microsoft and the broader tech industry. The Israeli cybersecurity company was approached by Google with a $23 billion deal, but CEO Assaf Rappaport announced on Tuesday that they would not proceed, aiming instead to focus on achieving $1 billion in annual revenue and planning for an initial public offering.
This acquisition was expected to enhance Google’s cybersecurity division, especially following a recent major service disruption linked to CrowdStrike, a leading cybersecurity firm. Analyst Dan Ives from Wedbush indicated that issues related to investor concern and antitrust investigations contributed to the deal’s failure. Google has faced increasing antitrust scrutiny, recently concluding one of its key legal battles with the Department of Justice.
In an email to investors, Ives suggested that the collapse of the Wiz deal might create significant ripple effects throughout the sector. He predicted that Google would continue to intensify its efforts in cybersecurity, which is also likely to prompt Microsoft to strengthen its own cybersecurity platform in the next 12 to 18 months.
Microsoft recently faced criticism due to a global IT outage caused by a flawed update to its cybersecurity software supplied by CrowdStrike. This incident affected numerous Microsoft users worldwide, leading to widespread disruptions, including business operations and flights.
Despite the setbacks, Ives maintains that CrowdStrike remains the benchmark in the cybersecurity field. However, he notes that this outage highlights the need for Microsoft to enhance its cybersecurity measures, and the failed acquisition of Wiz may provide an opportunity for such developments.