The recent decision by cybersecurity startup Wiz to turn down Google’s $23 billion acquisition offer could have significant repercussions for the tech landscape, particularly for Microsoft. Wiz CEO Assaf Rappaport shared that the rejection was a challenging choice aimed at focusing on driving Wiz towards an annual revenue goal of $1 billion and preparing for an IPO.
This acquisition was intended to enhance Google’s presence in cybersecurity, especially in the wake of a substantial outage last week caused by CrowdStrike, a leader in the industry. Analyst Dan Ives from Wedbush noted that factors such as investor apprehensions and antitrust challenges played a role in the deal’s collapse. Google has been under close antitrust scrutiny, recently concluding its trial in one of two major cases brought by the Department of Justice.
Ives indicated that the failure of this deal would likely create ripple effects throughout the cybersecurity sector. He anticipates that Google will intensify its efforts to expand its cybersecurity capabilities despite the setback with Wiz. Microsoft, as a competitor, is also expected to pursue growth in this area.
Ives stated that there is an imminent need for consolidation within the cybersecurity market, suggesting that Microsoft may strategically seek to enhance its cybersecurity platform in the upcoming 12 to 18 months. The recent CrowdStrike outage, which affected numerous Microsoft users globally, highlighted vulnerabilities and underscored the importance of strengthening cybersecurity measures. Despite Ives maintaining that CrowdStrike remains a leader in cybersecurity, the incident may encourage Microsoft to accelerate its developments in this critical field following Google’s unsuccessful bid for Wiz.