Google‘s massive $32 billion acquisition of cybersecurity firm Wiz gained significant momentum after Donald Trump’s presidential inauguration in January, with executives from both companies accelerating negotiations amid expectations of a more favorable regulatory environment under the new administration.
According to Reuters reporting, Google not only sweetened its original $23 billion offer from July to $32 billion but also dramatically increased the breakup fee to more than $3.2 billion—over 10% of the deal value—should regulatory issues derail the acquisition. This unusually high termination fee reflects the companies’ confidence in the deal’s prospects under Trump’s watch.
Google’s acquisition Wiz failed once last year, but then Trump’s appointment restarted the discussions
The deal represents one of the largest tech acquisitions in history and comes less than a year after previous negotiations between Google and Wiz collapsed, with the cybersecurity firm said to have dropped out to pursue IPO. Sources familiar with the agreement cited Trump’s January 20 inauguration and his appointment of key antitrust officials as pivotal factors that revitalized talks.
Trump’s selection of Andrew Ferguson to chair the Federal Trade Commission and Gail Slater to lead antitrust reviews at the Justice Department provided both companies with greater confidence in navigating regulatory hurdles. This marked a stark contrast to the previous regulatory climate, where Wiz executives had grown wary after watching Adobe’s $20 billion attempt to acquire Figma fall apart due to antitrust scrutiny in late 2023.
With Google currently battling two Department of Justice lawsuits—one regarding online search dominance and another concerning ad technology—the technology giant appears undeterred in its expansion strategy. The acquisition targets Wiz’s impressive growth metrics, including 70% annual revenue growth and over $700 million in annualized revenue.
Key architects of the deal included Google’s cloud chief Thomas Kurian and Wiz’s newly appointed CFO Fazal Merchant, who joined in January while the Israeli cybersecurity firm was still considering a potential initial public offering.