Google's massive $32 billion acquisition of cybersecurity company Wiz gained momentum after President Donald Trump's inauguration in January, with executives from both companies accelerating talks amid expectations for a more favorable regulatory environment under the new administration.

According to Reuters, Google not only sweetened its initial $23 billion offer in July to $32 billion, but also sharply increased its termination fee to over $3.2 billion—more than 10% of the deal's value—in case regulatory issues derail the acquisition. This unusually high termination fee reflects the companies' confidence in the deal's prospects under Trump's watch.

Google's acquisition of Wiz fell through last year, but Trump's appointment has reignited discussions.

The deal represents one of the largest tech acquisitions in history and comes less than a year after previous negotiations between Google and Wiz collapsed, with the cybersecurity firm reportedly withdrawing to pursue an IPO. Sources familiar with the agreement cited Trump's inauguration on January 20 and his appointment of key antitrust officials as key factors that revived the negotiations.

Trump's selection of Andrew Ferguson to chair the Federal Trade Commission and Gail Slater to lead the Justice Department's antitrust enforcement efforts gave both companies greater confidence in overcoming regulatory hurdles. This marked a sharp contrast to the previous regulatory climate, when Wiz executives became wary after watching Adobe's $20 billion bid to acquire Figma fall apart due to antitrust scrutiny in late 2023.

With Google currently fighting two Department of Justice lawsuits—one concerning its dominance in internet search and the other concerning advertising technology—the tech giant appears to be unwavering in its expansion strategy. The acquisition capitalizes on Wiz's impressive growth metrics, including 70% annual revenue growth and over $700 million in annual revenue.

The key architects of the deal were Google's cloud chief, Thomas Kurian, and Wiz's newly appointed chief financial officer, Fazal Merchant, who joined the team in January when the Israeli cybersecurity firm was still considering an initial public offering.