Google's $32 Billion Wiz Acquisition Faces DOJ Antitrust Probe
Deal News | Jun 19, 2025 | EIN
Alphabet Inc.'s Google is facing antitrust scrutiny from the Department of Justice (DoJ) over its proposed $32 billion all-cash acquisition of the cloud security startup Wiz. This inquiry follows a similar situation last year when Wiz withdrew from a $23 billion offer from Google due to regulatory concerns. The acquisition aims to bolster Google's cloud security arsenal against rivals like Microsoft and Amazon, incorporating Wiz into its current offerings from Mandiant and Siemplify. Google has prepared for potential regulatory hurdles by agreeing to a $3.2 billion breakup fee. If approved, the deal could transform the competitive landscape within the enterprise cybersecurity sector, especially as businesses adopt hybrid and multi-cloud strategies. The DoJ's diligence in preventing monopolistic practices in Google's cloud offerings adds to the company's ongoing legal challenges, including separate antitrust cases against its online search and digital advertising sectors.
Sectors
- Technology
- Cybersecurity
- Cloud Computing
Geography
- United States – The companies involved, Google and Wiz, operate primarily within the U.S., and the regulatory scrutiny is being conducted by the U.S. Department of Justice.
Industry
- Technology – The acquisition deal involves major players in the technology industry, including Google's product line expansion in cloud computing and cybersecurity.
- Cybersecurity – Wiz is a cybersecurity startup, and its acquisition aims to strengthen Google's offerings in this crucial sector.
- Cloud Computing – The acquisition is part of Google's strategy to improve its cloud-based services, integrating Wiz's security tools with its existing offerings.
Financials
- $32 Billion – The proposed value of Google's acquisition of Wiz.
- $3.2 Billion – Breakup fee agreed upon by Google in case the Wiz deal does not proceed.
- $23 Billion – Previous offer for Wiz by Google that was abandoned due to regulatory concerns.
- $5.4 Billion – Past acquisition amount for Mandiant by Google, another cybersecurity firm.
- $12 Billion – Estimated cloud-security spending Google aims to capture in the current year.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Alphabet Inc. | Bidding Company | Company | Parent company of Google, aiming to acquire Wiz to enhance its cloud security portfolio. |
| Bidding Company | Company | Division of Alphabet Inc., proposing a $32 billion acquisition of Wiz. | |
| Wiz | Target Company | Company | Startup specializing in cloud security, subject to a proposed acquisition by Google. |
| U.S. Department of Justice (DoJ) | Government | Government | Investigating the antitrust implications of Google's proposed acquisition of Wiz. |
| Jack Gold | Analyst | Person | Technology analyst providing insights into the implications of the Google-Wiz acquisition. |