Wiz’s decision to reject Google’s acquisition offer could have significant consequences for Microsoft, according to analysts.
Wiz, an Israeli cybersecurity startup, declined Google’s proposal to buy the company for $23 billion. CEO Assaf Rappaport described the choice as “tough,” as Wiz aims to reach $1 billion in annual revenue and pursue an initial public offering.
The potential acquisition would have strengthened Google’s cybersecurity portfolio, especially after a recent major outage attributed to CrowdStrike, a key player in the industry. Following the news of the deal falling through, Wedbush analyst Dan Ives noted that concerns among investors and antitrust issues were pivotal in Wiz’s decision. Google has come under heavy antitrust scrutiny and recently concluded a trial related to actions taken by the Department of Justice.
Ives emphasized that the failed acquisition is likely to create ripple effects throughout the tech sector. He stated that Google is expected to focus on expanding its cybersecurity capabilities despite the setback, and he anticipates that Microsoft will also look to enhance its cybersecurity offerings in the next year or 18 months.
Microsoft faced scrutiny recently due to a widespread IT outage linked to CrowdStrike’s software, which impacted many systems worldwide, resulting in confusion among users and disruption in various sectors, including business and government operations. Despite recognizing CrowdStrike as a leading name in cybersecurity, Ives suggests that the incident highlights the need for Microsoft to strengthen its cybersecurity solutions, especially in light of the unfulfilled Wiz acquisition.