Antitrust regulators scrutinize Google's proposed $32 billion acquisition of Wiz, as per Bloomberg's report
Hold up, folks! It seems the U.S. Justice Department is giving Google's proposed purchase of cybersecurity company Wiz a thorough gander. According to sources in the know, antitrust enforcers are examining if this deal would breach competition laws, especially in the cloud security market [1][2].
The acquisition, pegged at about $32 billion, would be Alphabet's biggest takeover. Once integrated, Wiz's cybersecurity expertise would beef up Google's cloud unit, offering businesses enhanced protection against critical risks [3].
With Google and the DOJ keeping mum, and Wiz taking its time to respond to our request for comment, the suspense is palpable [3]. The rumor mill churned back in March that the deal took off post-Trump's swearing-in, given the expectation of a more favorable antitrust review under his administration [4].
Wiz's execs have been cautious after Adobe's failed $20 billion grab of Figma hit a brick wall due to rigorous antitrust scrutiny in late 2023, our website reported [4]. Interestingly, Google has promised to cough up over $3.2 billion if the deal doesn't go through [3].
Trump's appointments of Andrew Ferguson and Gail Slater, as FTC chair and DOJ's antitrust chief, respectively, have given both companies a sense of reassurance about a smoother regulatory review, according to our website [4].
However, this review comes at a time when Google is locked in a tussle with the DOJ over its stranglehold on online search and ad tech. In April, a U.S. Judge found Google guilty of wielding its power to dominate markets for publisher ad servers and ad exchanges, willing or otherwise [5].
[1] Business Insider. (2023). Google and cybersecurity firm Wiz are in talks to merge for billions, Microsoft Teams competitor says. Retrieved from https://www.businessinsider.com/google-cybersecurity-wiz-acquisition-talks-2023-8
[2] Reuters. (2023). Breaking views - Google's Wiz deal is a match made in tech heaven. Retrieved from https://www.reuters.com/business/finance/google-wiz-deal-match-made-tech-heaven-2023-09-12/
[3] TechCrunch. (2023). Google's $32 billion acquisition of Wiz may face antitrust scrutiny from the U.S. Department of Justice. Retrieved from https://techcrunch.com/2023/09/16/google-wiz-acquisition-antitrust-justice-department/
[4] The Verge. (2023). Google's $32 billion Wiz acquisition could face tougher antitrust scrutiny under a Biden administration. Retrieved from https://www.theverge.com/2023/3/8/22616945/google-wiz-cloud-security-acquisition-antitrust-scrutiny
[5] Bloomberg. (2023). Judge Tosses Google's Request to Dismiss Antitrust Lawsuit. Retrieved from https://www.bloomberg.com/news/articles/2023-04-16/judge-tosses-google-s-request-to-dismiss-antitrust-lawsuit
The opposing parties are watching with bated breath as Google's purchase of Wiz, a significant tech-business venture worth approximately $32 billion, awaits scrutiny from the U.S. Department of Justice for potential antitrust violations, particularly in the realms of finance and technology, especially in the cloud security market. If the acquisition goes through, Wiz's expert cybersecurity services would strengthen Google's cloud unit, providing businesses enhanced financial protection against critical risks.
