Wiz’s decision to reject Google’s acquisition bid could have significant effects on the tech sector, particularly for Microsoft.
Wiz, an Israeli cybersecurity startup, turned down an offer from Google valued at $23 billion. CEO Assaf Rappaport stated that the decision was challenging but necessary for the company to focus on achieving $1 billion in annual revenue and preparing for an initial public offering.
This acquisition would have enhanced Google’s cybersecurity capabilities, especially following a major outage caused by the cybersecurity firm CrowdStrike last week. Analyst Dan Ives from Wedbush noted that investor concerns and antitrust issues contributed to the deal’s collapse. Google has faced intense scrutiny related to antitrust matters and has recently concluded a trial related to one of two significant cases brought by the Department of Justice.
Ives mentioned that the failed acquisition would likely have ripple effects throughout the industry. He expects Google to continue expanding its cybersecurity initiatives and suggests that Microsoft may pursue a similar path to strengthen its cybersecurity platform in the next year to 18 months.
Microsoft faced criticism following the extensive global IT outage attributed to a faulty update from CrowdStrike, which affected many businesses and services worldwide. While Ives still regards CrowdStrike as the leading name in cybersecurity, the recent disruptions indicate a potential need for Microsoft to enhance its cybersecurity solutions, particularly in light of Google’s failed acquisition attempt.