Wiz’s decision to reject a $23 billion acquisition offer from Google could significantly impact the tech industry, particularly Microsoft.
The Israeli cybersecurity startup Wiz turned down the offer to focus on achieving $1 billion in annual revenue and preparing for an initial public offering (IPO), as stated by CEO Assaf Rappaport. This acquisition would have strengthened Google’s cybersecurity division, especially following a recent widespread outage caused by CrowdStrike, a major player in the industry.
Wedbush analyst Dan Ives noted that concerns among investors and ongoing antitrust issues prompted the deal’s collapse. Google has faced increasing scrutiny regarding its market practices and recently concluded a significant trial related to antitrust matters.
Ives expressed belief that there will be broader repercussions across the tech sector due to this failed acquisition. He suggested that Google is likely to intensify its efforts to expand its cybersecurity capabilities, a path Microsoft may also consider.
With the recent global IT outage linked to Microsoft’s use of CrowdStrike’s cybersecurity software, experts anticipate that Microsoft might seek to enhance its cybersecurity operations in the next year to 18 months. Although Ives still regards CrowdStrike as a leader in the cybersecurity field, the outage underlines the need for Microsoft to strengthen its own cybersecurity solutions, with the dissolution of the Google-Wiz deal leaving more opportunities in the market.