How Trump's administration paved the way for Google's $32 bn Wiz deal

Google’s $32 billion acquisition of cybersecurity firm Wiz gained momentum following Donald Trump’s presidential inauguration in January, as executives from both companies expedited negotiations in anticipation of a more favourable regulatory climate under the new administration.  

 

According to a Reuters report, Google raised its initial $23 billion bid from July to $32 billion and significantly increased the breakup fee to over $3.2 billion — exceeding 10 per cent of the deal’s total value — in case regulatory challenges obstruct the acquisition. This unusually high termination fee underscores the companies’ confidence in securing approval under the Trump administration.  

 

The acquisition marks one of the largest in the tech sector and follows a failed attempt last year when Wiz reportedly opted to pursue an initial public offering instead. However, discussions gained new traction after Trump took office on January 20 and appointed key antitrust officials, which sources say played a crucial role in reviving the deal, The Times of India reported.    ALSO READ | Why Trump 2.0 could play spoilsport for India's coddled billionaires

 

Trump’s selection of Andrew Ferguson as chair of the Federal Trade Commission and Gail Slater to oversee antitrust matters at the Justice Department bolstered confidence within both firms regarding regulatory approval. This shift in leadership stood in contrast to the previous administration, under which Wiz executives were reportedly hesitant, especially after Adobe’s $20 billion acquisition of Figma was blocked due to antitrust concerns in late 2023, the report said.

 

Despite facing two ongoing Department of Justice lawsuits — one related to its dominance in online search and another concerning its advertising business — Google remains steadfast in its expansion strategy. The acquisition is aimed at leveraging Wiz’s rapid growth, with the cybersecurity firm boasting a 70 per cent annual revenue increase and over $700 million in annualised revenue.    ALSO READ | L&T Tech launches TrackEi for smarter rail inspections: Here's how it works

 

Key figures driving the deal include Google Cloud chief Thomas Kurian and Wiz’s CFO Fazal Merchant, who took on the role in January while the Israeli cybersecurity firm was still weighing an IPO.