There are additional issues arising from Google’s acquisition of the cybersecurity platform company Wiz for up to 32 billion dollars. Google had previously discussed this matter with Wiz last year at a lower valuation of 23 billion dollars, but could not come to a conclusion. What has changed that led to a new deal within less than a year and finally reached an agreement?
Reuters cited sources related to the news, stating that a key factor in this matter is the appointment of Donald Trump as President of the United States. He has expressed a policy to reduce the intensity of scrutinizing mergers and acquisitions that may hinder business opportunities. This is a significant reason why Wiz did not agree to sell its business to Google last year, as they were concerned that regulatory agencies would not approve, similar to what Adobe faced when acquiring Figma.
News sources reported that Google immediately resumed negotiations with Wiz after Trump took office just a few days ago. At that time, Wiz was still considering going public on the stock market. However, considering the increased offer by 39%, along with the penalties Google would pay if the deal fell through, amounting to 3.2 billion dollars or 10%, made Wiz see it as a better option than going public.
The reason behind Google agreeing to increase the valuation of Wiz is because Wiz’s revenue in the past year has grown by up to 70%, exceeding 700 million dollars.
TLDR: Google acquired the cybersecurity platform company Wiz for up to 32 billion dollars after negotiations restarted following changes in regulatory policies. Wiz saw this deal as a better option than going public due to the increased offer and penalties involved.
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