By Asmita - Mar 19, 2025
Google's $32 billion acquisition of cybersecurity startup Wiz, its largest deal to date, aims to enhance its cloud computing capabilities amid rising competition. The negotiation gained momentum after Donald Trump's inauguration, with Google increasing its offer to $32 billion, citing expectations of a more favorable antitrust review. Key role played by Wiz's leadership and Google's executives led to the successful acquisition, signaling a strategic shift in major tech companies navigating regulatory challenges in cybersecurity and cloud services.
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In a significant development for the tech industry, Google has reached a $32 billion agreement to acquire Wiz, a rapidly growing cybersecurity startup. This deal, announced on March 18, 2025, marks Google's largest acquisition to date, surpassing its previous record of $12.5 billion for Motorola Mobility in 2012. The acquisition is part of Google's broader strategy to enhance its cloud computing capabilities amidst increasing competition from giants like Amazon and Microsoft. The integration of Wiz into Google Cloud is expected to bolster the company's security offerings, which are becoming increasingly vital as businesses face growing cyber threats.
The negotiations for this acquisition gained momentum shortly after Donald Trump's inauguration as President. Sources indicate that the shift in the political landscape played a crucial role in accelerating discussions between Google and Wiz. Initially, Google had proposed a $23 billion offer for Wiz, which was rejected. However, following Trump's election, Google sweetened its offer to $32 billion and significantly increased the breakup fee to over $3.2 billion. This change was influenced by expectations of a more favorable antitrust review under the Trump administration, making the deal more appealing to both parties involved.
Wiz's leadership also played a pivotal role in finalizing the deal. In January 2025, Fazal Merchant was appointed as the new Chief Financial Officer at Wiz and was instrumental in shaping the agreement alongside CEO Assaf Rappaport. Regular meetings among executives from both companies commenced after Trump's inauguration, leading to intensified negotiations that ultimately resulted in the successful completion of the acquisition. Google's cloud chief, Thomas Kurian, was also a key architect behind the agreement, demonstrating the commitment of Google's leadership to strengthen its position in the cybersecurity market.
The acquisition is set against a backdrop of heightened scrutiny of big tech mergers by regulatory bodies. While there are no guarantees that the deal will receive approval from antitrust regulators, analysts suggest that it may be viewed more favorably under Trump's administration compared to previous evaluations during the Biden era. Michael Carrier, an antitrust law professor, noted that mergers enhancing competitiveness in artificial intelligence could be more readily approved. If finalized, this acquisition would not only reshape Google's cloud division but also signal a strategic shift in how major tech companies navigate regulatory challenges while pursuing growth opportunities in cybersecurity and cloud services.