Google’s $32 billion acquisition of Wiz draws antitrust attention
Regulators are examining whether the deal would impact competition in cloud security. Should the deal ultimately fall through, Wiz stands to gain a breakup fee exceeding $3.2 billion.
A U.S. Department of Justice review is adding uncertainty to Google’s planned $32 billion acquisition of Israeli cybersecurity company Wiz, in what is set to become the largest tech deal in Israel’s history and one of the biggest cybersecurity acquisitions ever.
According to Bloomberg, the DOJ’s antitrust division has begun evaluating whether the deal could harm competition in cloud security, a sector where Google competes closely with Microsoft and Amazon. The review follows a broader pattern of increased regulatory scrutiny on large tech companies, particularly around market consolidation in key digital infrastructure areas.
If approved, the acquisition would integrate Wiz into Google Cloud, strengthening the company’s ability to offer cybersecurity solutions to enterprise customers. Founded in 2020, Wiz has revenues of over $500 million annually.
The DOJ’s inquiry comes amid broader legal challenges for Google, which is currently facing lawsuits related to its dominance in search and advertising technology. In April, a federal judge ruled that the company had maintained a monopoly in parts of the online ad market.
The timing of the Wiz acquisition was shaped in part by expectations of a more favorable regulatory environment under the current U.S. administration. Executives from both companies reportedly accelerated deal discussions following President Donald Trump’s return to office, and new leadership appointments at key antitrust agencies.
Still, the regulatory process is far from settled. Antitrust reviews, especially of deals involving major tech platforms, can extend well beyond initial expectations.
Should the deal ultimately fall through, Wiz stands to gain a substantial compensation. Google has reportedly agreed to pay a breakup fee exceeding $3.2 billion if the acquisition fails to close, representing more than 10% of the deal’s total value.
Such a fee is unusual in size, and reflects the strategic importance both parties attach to the deal. For Wiz, it also provides a significant financial cushion. The company, which has raised $1.9 billion in venture capital to date, would retain its independence and gain new resources to support further expansion or pursue an IPO.
