Google is making its biggest acquisition ever, agreeing to buy cybersecurity firm Wiz for $32 billion in cash. The deal comes just months after the Biden administration’s Justice Department crushed Google in an antitrust lawsuit and weeks after the company failed to secure Wiz due to regulatory concerns.
Now, with Donald Trump back in the White House, Alphabet is taking another shot—this time with a $10 billion higher price tag. Wiz will be folded into Google Cloud, a division that lags behind Amazon and Microsoft in market share.
That positioning makes the regulatory battle different from Google’s search monopoly case, but it doesn’t mean the deal will sail through. Andrew Ferguson, Trump’s new FTC chair, will have to decide if the purchase strengthens Google’s control over cloud services or if it’s simply an expansion of a smaller part of the company.
Google tests Trump’s approach to Big Tech
The Federal Trade Commission under Lina Khan aggressively blocked tech deals during Biden’s presidency, frustrating even Democratic investors like Reid Hoffman and Mark Cuban. With Ferguson in charge, Google’s acquisition of Wiz is expected to be the first major test of Trump’s second-term approach to Big Tech mergers.
Brad Haller, a senior mergers and acquisitions partner at West Monroe, called the deal a key moment for the industry. “This happening relatively early on this year means it can be used as a measuring stick,” he said.
For Google, the risk is significant. Reuters reported that Wiz agreed to a $3.2 billion termination fee—one of the largest in history. If regulators block the deal again, Wiz still walks away with billions.
Wiz was founded in 2020 and quickly hit $100 million in annual recurring revenue. Its cloud security products focus on threat prevention, active detection, and response, all critical as AI-driven cyberattacks grow more advanced. That’s what makes the company valuable to Google, which is pushing to expand its security offerings amid the AI boom.
Silicon Valley cashes out after brutal years
For venture capital firms, the deal is a rare win. After the IPO market collapsed in 2022, tech investors struggled to exit their investments. VC exit value peaked at $780 billion in 2021, but fell to $89.2 billion in 2022 and $71.6 billion in 2023. By the third quarter of 2024, exits hit their lowest level in five quarters.
Wiz’s acquisition changes that. The biggest outside investor is Index Ventures, followed by Sequoia Capital, Insight Partners, and Cyberstarts. Haller said, “Large acquisition strategy is back on the menu for VC-backed companies.”
Wiz nearly took a different path. In July 2024, co-founder Assaf Rappaport told employees the company was preparing for an IPO instead of selling to Google. But economic uncertainty, fueled by Trump’s tariffs on China, Mexico, and Canada and massive government spending cuts, has created market volatility. The Nasdaq is heading for its worst quarter since 2022, making acquisitions look more appealing.
Google’s move signals that, despite regulatory risks, the company sees Wiz as a necessary purchase. Analysts at Gordon Haskett noted the urgency in Google’s actions. “That price tag tells us that Google was almost desperate to boost its security bona fides before the adoption of AI gathers even more speed,” they wrote.
Google echoed that urgency in its announcement. “The increased role of AI, and adoption of cloud services, have dramatically changed the security landscape for customers, making cybersecurity increasingly important in defending against emergent risks and protecting national security.”
Rappaport expressed excitement about the acquisition, saying, “Becoming part of Google Cloud is effectively strapping a rocket to our backs.”
Regulators prepare for a fight
Regulatory approval isn’t guaranteed. Analysts at Bank of America believe Google has a stronger case compared to consumer-focused acquisitions, but the FTC and DOJ are still expected to scrutinize the deal.
Google’s biggest purchase under Biden was Mandiant for $5.4 billion, a much smaller acquisition. Meanwhile, Microsoft spent $69 billion acquiring Activision Blizzard, which took 21 months of regulatory battles to close. The FTC also sued Meta to stop its purchase of Within, though the courts ultimately allowed it.
The FTC and DOJ already have antitrust cases pending against Google. Trump’s return to power doesn’t necessarily mean the company is in the clear.
Khan made that clear in January when she told CNBC’s Squawk Box that she hoped Trump wouldn’t cut “sweetheart deals” to let Amazon and Meta escape their lawsuits. She made those comments right after Google and other tech firms pledged millions to Trump’s inauguration fund.
Ferguson, speaking to Squawk Box last week, said Big Tech remains a top priority for the administration. “President Trump appointed me to protect Americans in the marketplace,” he said. “And I’ve said since day one, Big Tech is one of our main priorities, and that remains true.”
Google isn’t the only company working to get on Trump’s good side. During his first presidency, he routinely attacked Amazon founder Jeff Bezos, largely over his ownership of The Washington Post. He also criticized Meta and Google, accusing them of bias against his administration.
Now, Amazon, Meta, and other tech giants are making efforts to align with Trump’s policies. Companies are scaling back diversity, equity, and inclusion programs, a move that fits the administration’s stance. Tech executives are also attending Trump’s Washington events, despite previous meetings at Mar-a-Lago.
Jonathan Kanter, the former DOJ antitrust chief, told CNBC’s Power Lunch that Google’s Wiz deal faces an uphill battle. He warned that the issue isn’t just about cloud dominance—it’s about data control.
“I don’t think the Wiz deal is going to ease on down the road to quick approval,” Kanter said. “It’s going to be a long road. They’re going to have to look at a lot of documents, a lot of data, and understand whether it’s really going to entrench Google’s market power in a lot of different markets.”
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
