Wiz’s decision to reject Google’s acquisition offer could significantly affect Microsoft and the tech industry overall. The Israeli cybersecurity startup turned down Google’s proposed $23 billion deal in order to focus on its goal of achieving $1 billion in annual revenue and preparing for an initial public offering (IPO), according to Wiz CEO Assaf Rappaport.
This deal would have strengthened Google’s position in the cybersecurity sector, particularly coming on the heels of a substantial outage triggered by CrowdStrike, a leader in the industry. Analyst Dan Ives from Wedbush reported that antitrust issues and investor apprehensions contributed to the deal’s collapse. Google has faced considerable antitrust scrutiny, recently concluding one of two significant trials initiated by the Department of Justice.
Ives predicts that the fallout from this failed acquisition will resonate throughout the tech industry. He suggests that Google will likely intensify its efforts to develop its cybersecurity capabilities. Microsoft is expected to follow suit, as Ives believes that consolidation in the cybersecurity space is needed.
The recent global IT outage, attributed to a flawed CrowdStrike update, has drawn negative attention to Microsoft, whose systems utilize CrowdStrike for cybersecurity. This incident affected many users worldwide, leading to widespread disruptions in businesses, flights, and governmental operations. Despite acknowledging that CrowdStrike remains a top cybersecurity provider, Ives suggests that this outage highlights the need for Microsoft to enhance its cybersecurity offerings, which could be further emphasized by Google’s unsuccessful acquisition attempt.