Google confirmed a big buyout, approving a $32 billion all-cash acquisition to buy Wiz, a prominent Israeli cloud-security firm. In this major technology news, the firm will become part of Google Cloud, subject to regulatory clearance.
Deal Hits Regulatory Hurdle as DOJ Seeks Breakup of Google
The timing of the deal is also important, as it comes during a period when the U.S. Department of Justice is keen to break up parts of Google’s business. The DOJ wants to force Google to divest its Chrome browser following a court ruling that concluded Google had unlawfully maintained a monopoly. Google also is waiting for the outcome of another antitrust case regarding its advertising technology business.
Wiz to Stay Multicloud Even After Google Tie-Up
Wiz’s security products will continue to support all the leading cloud platforms, including Amazon Web Services (AWS), Microsoft Azure, and Oracle Cloud, even after the pending acquisition. Google assured that Wiz will not give up its multicloud capabilities even after the deal.
A Deal Years in the Making: From Broken Talks to Record-Breaking Fee
Google and Wiz almost signed a $23 billion deal in mid-2024, but talks fell through due to fear of long-running regulatory approvals and differences over the post-merger organization of Wiz.
In this new deal, Google has apparently promised a $3.2 billion breakup fee in case the deal is thwarted or canceled—well above the typical 2-3% breakup fees on comparable transactions. The high fee is seen by analysts as insurance against regulatory issues even under today’s administration.
Regulatory Climate Shifting Under Trump Administration
Although Google’s announcement recognizes the threat of regulatory action, market observers are growing more confident that mergers will encounter fewer hurdles under President Donald Trump. Reuters reported that policy shifts on antitrust could lead to more big-ticket deals in the months ahead.
Wiz and Google Cloud: A Strategic Fit
Wiz CEO Assaf Rappaport confirmed that the company’s vision of being a multicloud platform is not changing. “We will continue to work very closely with partners like AWS, Azure, Oracle, and others,” Rappaport said.
Google Cloud CEO Thomas Kurian described how Wiz will expand Google’s security offerings by taking a proactive approach to cloud security threats. While Google’s existing services are designed to detect and respond to attacks, Wiz’s technology is intended to enable organizations to stop breaches from happening in the first place.
Kurian defined Wiz’s platform as a solution that “maps out a detailed graph of a customer’s code, cloud resources, services, and apps,” enabling companies to discover key vulnerabilities and remediate threats prior to deployment.
