Google-Wiz Deal Becomes Key Test for Trump Administration’s Approach to Big Tech

Google’s $32 Billion Wiz Acquisition Faces Regulatory Scrutiny Under Trump’s FTC

Seven months after Alphabet (Google’s parent company) lost a high-profile antitrust case under the Biden administration’s Justice Department, the tech giant has gone back on the offensive under President Donald Trump’s return to the White House.

Google has now struck a $32 billion cash deal to acquire cybersecurity firm Wiz, a move that marks its largest acquisition ever and a major test for Trump’s approach to Big Tech regulation.

Key Details of the Deal

Google’s Bold Acquisition

• Google announced on Tuesday that it will acquire Wiz for $32 billion, almost $10 billion more than its initial 2024 bid.
• The deal is expected to close next year, pending regulatory approval.

Why Wiz? The Cybersecurity Factor

• Wiz, founded in 2020, has grown rapidly, hitting $100 million in annual recurring revenue within just 18 months.
• The company provides cutting-edge cloud security solutions, which are becoming increasingly critical as AI-driven cyber threats escalate.

Google’s Cloud Strategy

• Unlike Google’s dominant search business, its cloud division lags behind Amazon and Microsoft in cloud infrastructure.
• Google is betting that Wiz will strengthen its cloud security offerings, making it more competitive.

Will Trump’s FTC Approve the Deal?

A Big Test for New FTC Leadership

• The deal will be the first major test for Trump-appointed FTC Chair Andrew Ferguson, as Big Tech companies assess how the new administration will handle mergers and acquisitions.
• The previous FTC, led by Lina Khan, aggressively fought tech deals, blocking or delaying mergers under Biden’s presidency.

What’s at Stake?

• If the FTC approves the deal, it could signal a more business-friendly regulatory environment under Trump.
• If it faces heavy scrutiny, it suggests that Big Tech remains a key target for antitrust enforcement.

Why This Deal Matters for Silicon Valley

Venture Capital’s Struggles & the Return of Big Acquisitions

• The tech IPO market has been slow since 2022, and venture capital firms have struggled to generate returns.
• A major acquisition like this signals that Big Tech is once again looking to buy startups, providing VC-backed companies a new exit strategy.

Big Winners

• Index Ventures is Wiz’s largest outside investor, followed by Sequoia Capital, Insight Partners, and Cyberstarts.
• These firms are poised for a significant financial windfall if the acquisition goes through.

Massive Termination Fee

• Wiz agreed to a $3.2 billion termination fee—one of the largest in M&A history, showing Google’s commitment to pushing the deal through.

Trump’s Relationship with Big Tech: A Shift or a Standoff?

Trump vs. Big Tech: Then & Now

• During his first term, Trump clashed with Silicon Valley, frequently criticizing Google, Amazon, and Meta.
• Now, Big Tech is making efforts to mend relations, with executives attending Trump’s inauguration and adjusting business strategies.

Will Google Face the Same Antitrust Heat?

• Google’s $5.4 billion acquisition of Mandiant (2022) faced scrutiny but was ultimately approved.
• Under Biden, Microsoft’s $69 billion takeover of Activision Blizzard was delayed for nearly two years due to regulatory battles.

Trump’s FTC Chair Speaks Out

• Andrew Ferguson has not given specific guidance on how he will handle tech mergers, but he has stated:
  

  “Big Tech is one of our main priorities.”

• This suggests that Google will face intense scrutiny, despite a more business-friendly administration.

What’s Next?

Regulatory Review Begins

• Former DOJ Antitrust Chief Jonathan Kanter believes that Google will face a tough approval process, telling CNBC:
  

  “This deal isn’t going to cruise through. The FTC will scrutinize Google’s data control and whether it entrenches its market power.”

Stock Market & Economic Uncertainty

• The Nasdaq is facing its worst quarter since 2022, with concerns over Trump’s tariffs and government spending cuts adding to market volatility.
• How this deal unfolds could set the tone for Big Tech mergers in 2025.

Final Verdict Pending

• The Google-Wiz deal is more than just a corporate acquisition—it’s a major test of Trump’s approach to Big Tech regulation.
• Will Trump’s administration greenlight the merger, or will it continue the tough stance on monopolistic practices?

Stay tuned as we track how this deal plays out!