DK Business Network
Google’s $32 billion acquisition of cybersecurity firm Wiz advanced significantly after US President Donald Trump’s inauguration, as executives from both companies accelerated negotiations, anticipating a more favorable regulatory environment under the new administration.
Google increased its initial $23 billion offer from July to $32 billion and raised the breakup fee to over $3.2 billion—exceeding 10% of the deal’s total value. This high termination fee signals the companies’ confidence in securing approval under Trump’s leadership.
The deal, one of the largest in the tech industry, follows a failed attempt last year when Wiz reportedly considered an IPO instead. However, discussions resumed with renewed intensity after Trump took office on January 20 and appointed key officials, who played a crucial role in finalizing the agreement.
The appointment of Mr.Andrew Ferguson as chair of the Federal Trade Commission and Mr.Gail Slater as the official overseeing antitrust matters at the Justice Department strengthened confidence within Google and Wiz regarding regulatory approval. This leadership change contrasted with the previous administration, during which Wiz executives were reportedly hesitant, particularly after the Adobe-Figma deal, valued at $20 billion, was blocked over antitrust concerns in late 2023, the report noted.
Despite being the target of two ongoing Department of Justice lawsuits—one addressing Google’s dominance in online search and the other scrutinizing its advertising business—the company remains committed to its expansion efforts.
The acquisition is designed to capitalize on Wiz’s rapid growth, as the cybersecurity firm reports a 70% annual revenue increase and over $700 million in annualized revenue. Key figures driving the deal include Google Cloud chief Mr.Thomas Kurian and Wiz CFO Mr.Fazal Merchant, who assumed his role in January while the Israeli cybersecurity company was still considering an IPO.
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