Google is preparing to acquire cybersecurity company Wiz Inc. for billions of dollars, but this deal has drawn the attention of US antitrust authorities.
Antitrust Investigation of the Deal
According to sources familiar with the matter, the US Department of Justice's antitrust division is investigating whether the acquisition could illegally limit competition in the marketplace. Officials are examining the details of Alphabet Inc.’s plan and discussing it with merging companies, as well as competitors and customers. The review is still in its early stages and could take months.
Comparisons with Previous Acquisitions
The acquisition of Wiz is not Google’s first large purchase in cybersecurity. In 2022, it acquired Mandiant for $5.4 billion. If the deal with Wiz proceeds, it will become one of the company's largest purchases. Google has agreed to pay Wiz a breakup fee of about $3.2 billion, approximately 10% of the deal value.
Prospects and Significance of the Deal
Reports indicate that the cybersecurity market is growing rapidly, with forecasts suggesting its value may triple by 2034. Wiz's products will help Google enhance its cloud security offerings, which is increasingly crucial in light of rising cybersecurity threats.
Google’s acquisition of Wiz is seen as a strategic move in a rapidly evolving cybersecurity market, but the success of the deal will depend on the outcome of the antitrust investigation.
