Wiz’s decision to reject Google’s acquisition offer could significantly impact Microsoft and the broader tech industry. The Israeli cybersecurity startup turned down Google’s proposed $23 billion deal, as CEO Assaf Rappaport expressed a desire to focus on growing Wiz toward a $1 billion annual revenue target and an eventual public offering.
This decision comes at a time when Google was hoping to enhance its cybersecurity capabilities following a major outage attributed to CrowdStrike, which affected many in the tech sector last week. Analyst Dan Ives of Wedbush noted that concerns from investors and antitrust issues contributed to the collapse of the deal. Google has faced heightened scrutiny from regulators and recently concluded a major trial concerning antitrust allegations.
Ives highlighted the potential sector-wide ramifications of the deal’s failure, suggesting that Google will likely intensify efforts to expand its cybersecurity presence. This sentiment extends to Microsoft, which may also pursue opportunities to strengthen its cybersecurity platform in the next year or so.
The situation gained attention for Microsoft after a widespread global IT outage linked to a problem with CrowdStrike’s cybersecurity software, which is employed by Microsoft’s systems. This incident led to disruptions across various sectors, including businesses and government operations. Despite Ives labeling CrowdStrike as the top provider in cybersecurity, the recent failures suggest that Microsoft needs to enhance its cybersecurity services, especially with the failure of Google’s attempt to acquire Wiz providing a new opening.