Wiz’s decision to reject Google’s acquisition offer could significantly impact Microsoft, according to analysts.
Google had aimed to acquire the Israeli cybersecurity firm Wiz for $23 billion, but the deal fell through on Tuesday after Wiz’s CEO, Assaf Rappaport, opted to turn down the offer in favor of focusing on the company’s growth and future plans, including reaching $1 billion in annual revenue and pursuing an IPO.
This acquisition would have strengthened Google’s cybersecurity capabilities, especially following a recent major outage linked to CrowdStrike, a key player in the cybersecurity sector. Analyst Dan Ives from Wedbush stated that concerns over investor confidence and antitrust issues have plagued Google, which is currently under scrutiny after completing a trial related to two significant Department of Justice cases.
Ives emphasized that the failure of this deal would have broader ramifications for the tech sector, suggesting that Google will likely continue to enhance its cybersecurity initiatives. Similarly, Microsoft may also aim to expand its cybersecurity portfolio in the coming months, as Ives pointed out that consolidation in this area is overdue.
Recently, Microsoft faced criticism due to a widespread IT outage caused by an update from CrowdStrike, which impacted its operating systems. The incident led to significant disruptions for businesses and government operations worldwide. Despite being considered a leader in cybersecurity, the outage underscored the need for Microsoft to strengthen its cybersecurity measures, especially in light of Google’s failed acquisition, which could increase market opportunities.