Wiz’s decision to decline Google’s $23 billion acquisition offer is poised to have significant ramifications for the tech industry, particularly for Microsoft. The Israeli cybersecurity startup, which was seen as a pivotal addition to Google’s cybersecurity portfolio, opted out of the deal as CEO Assaf Rappaport expressed a desire to focus on growing Wiz toward a $1 billion annual revenue goal and a future initial public offering.
The potential acquisition would have strengthened Google’s position in cybersecurity, especially following a recent major outage linked to CrowdStrike, raising urgent concerns in the cyber world. Analyst Dan Ives from Wedbush noted that concerns over investor sentiment and antitrust issues were central to the deal’s collapse, particularly as Google faces scrutiny over its market practices, including a recent trial related to antitrust allegations.
Ives suggested that the failure of this deal may create broader consequences across the cybersecurity landscape. He anticipates that Google will continue to invest heavily in expanding its cybersecurity capabilities, a trend likely mirrored by Microsoft.
Ives remarked that with a need for consolidation in the cybersecurity sector, Microsoft may seek to enhance its own cybersecurity strategies in the next 12 to 18 months. This comes on the heels of a widespread IT outage triggered by a problematic CrowdStrike software update, which had a notable impact on Microsoft Windows users globally, causing significant disruptions.
While Ives maintains that CrowdStrike remains an industry leader in cybersecurity, the recent incident indicates that there is ample opportunity for Microsoft to strengthen its cybersecurity offerings, particularly in light of Google’s failed acquisition of Wiz.