Wiz’s decision to reject Google’s acquisition offer could have significant repercussions for Microsoft, according to an analyst.
Google had intended to acquire the Israeli cybersecurity startup Wiz for $23 billion, but the offer was turned down by Wiz CEO Assaf Rappaport. He described the choice as “tough,” emphasizing the company’s goal of reaching $1 billion in annual revenue and pursuing an initial public offering (IPO).
This acquisition would have enhanced Google’s cybersecurity division, particularly following a major outage attributed to CrowdStrike that affected the industry just last week. Analyst Dan Ives from Wedbush noted that concerns from investors and ongoing antitrust challenges contributed to the deal’s collapse. Google has faced increased scrutiny from antitrust regulators and recently concluded one of two major trials with the Department of Justice.
Ives stated that the lack of this deal would create significant impacts across the technology sector. He believes that Google will likely continue to focus on expanding its cybersecurity capabilities despite the setback, a trend that Microsoft may also follow.
He mentioned that consolidation is overdue in the cybersecurity market, hinting that Microsoft might seek to enhance its own cybersecurity platform within the next 12 to 18 months. Microsoft’s recent involvement in a substantial global IT outage due to an update problem with CrowdStrike has drawn criticism and highlighted a need for strengthening its cybersecurity measures. Although Ives maintains that CrowdStrike remains a leader in cybersecurity, the incident suggests that Microsoft could benefit from further investment in this area, especially with Google’s failed acquisition creating further opportunities.