Wiz’s decision to decline Google’s acquisition offer could significantly affect Microsoft, according to analysts.
Google aimed to acquire the Israeli cybersecurity startup Wiz for $23 billion, but Wiz CEO Assaf Rappaport announced on Tuesday that the company would not proceed with the deal. Rappaport expressed that the choice was challenging, as Wiz is focused on growing revenue to $1 billion annually and plans for an IPO.
This acquisition would have strengthened Google’s cybersecurity capabilities, especially following a major outage last week involving CrowdStrike, a significant player in the cybersecurity realm. Wedbush analyst Dan Ives noted in a report that concerns among investors and ongoing antitrust challenges were factors leading to the deal’s collapse. Google has faced heightened antitrust scrutiny in recent years and recently concluded a trial related to one of two major cases brought by the Department of Justice.
Ives commented that the failed deal would have broader implications for the tech industry. He anticipated that Google would continue to invest heavily in cybersecurity despite losing the Wiz opportunity. Similarly, he predicted that Microsoft might take the opportunity to enhance its cybersecurity offerings in the next 12 to 18 months.
The situation has put Microsoft in a difficult position following the recent global IT outage resulting from issues with a CrowdStrike update. During this incident, users reported problems with Microsoft’s systems, indicating a potential need for Microsoft to strengthen its cybersecurity infrastructure further. The absence of the Wiz deal could create further opportunities for Microsoft to bolster its cybersecurity strategies.