Wiz’s decision to reject Google’s acquisition offer could significantly affect Microsoft, according to an analyst. Google had aimed to acquire the Israeli cybersecurity startup Wiz for $23 billion, but Wiz CEO Assaf Rappaport chose to turn down the proposal to focus on achieving $1 billion in annual revenue and preparing for an IPO.
This acquisition would have strengthened Google’s cybersecurity operations, particularly after a major outage linked to CrowdStrike, a prominent player in the industry. Following Wiz’s decision, Wedbush analyst Dan Ives noted that investor apprehensions and antitrust challenges led to the collapse of the deal. Google has faced considerable antitrust scrutiny and recently concluded a trial involving the Department of Justice.
Ives emphasized that the failed acquisition will have broader implications for the sector. He predicts that Google will continue to enhance its cybersecurity capabilities despite the absence of the Wiz deal, a trend that Microsoft is also likely to pursue. Ives indicated that consolidation is needed within the cybersecurity space, and he anticipates Microsoft will seek to strengthen its own cybersecurity platform in the next 12 to 18 months.
Microsoft recently found itself under scrutiny due to a significant global IT outage caused by a software update from CrowdStrike, which disrupted services for numerous users worldwide. While Ives has acknowledged CrowdStrike as a leading force in cybersecurity, the incident suggests that Microsoft may need to enhance its cybersecurity offerings, with the failed Google-Wiz deal further opening that possibility.