Wiz’s decision to decline Google’s acquisition offer could significantly impact Microsoft, according to analysts.
Google had intended to acquire Wiz, an Israeli cybersecurity startup, for $23 billion, but Wiz CEO Assaf Rappaport announced on Tuesday that the company would reject the offer. Rappaport cited the company’s goal of achieving $1 billion in annual revenue and planning for an IPO as key reasons for the decision.
The acquisition would have enhanced Google’s cybersecurity division, especially following a recent widespread outage linked to CrowdStrike, a leading cybersecurity firm. Analyst Dan Ives from Wedbush noted that the collapse of the deal stemmed from investor concerns and ongoing antitrust issues surrounding Google. The company has faced considerable scrutiny and recently completed a trial related to a significant case brought by the Department of Justice.
Ives expressed that the failed acquisition would create ripple effects across the technology sector. He anticipated that Google would persist in strengthening its cybersecurity capabilities despite the setback. Similarly, he suggested that Microsoft might pursue acquisitions to enhance its own cybersecurity platform over the next year and a half.
Microsoft recently faced criticism following a global IT outage caused by a flawed update to software provided by CrowdStrike, which affected numerous businesses and services. Although Ives still considers CrowdStrike as the leading figure in cybersecurity, this incident suggests an opportunity for Microsoft to further develop its cybersecurity offerings, especially with Google’s failed deal opening up new prospects.