Google parent Alphabet, Inc. GOOG GOOGL announced on Tuesday that it has signed an agreement to acquire cloud security platform Wiz for $32 billion. Experts weigh in on Google's largest acquisition ever.
Expert Ideas: J.P. Morgan analyst Doug Anmuth sees the Wiz acquisition as strengthening Google's cybersecurity suit and allowing for safer and more efficient multicloud operations.
"We believe the Wiz acquisition will further strengthen Google's multicloud value proposition & deepen its enterprise relationships as Wiz is used by over 50% of Fortune 100 companies," the analyst wrote.
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Anmuth noted the expected closing date for the deal is 2026 and believes the longer-than-usual closing reflects the regulatory scrutiny the acquisition will face. He sees the deal as a type of bellwether for the Trump administration's tolerance for large-scale mergers and acquisitions, which will have broader implications for other large-cap tech companies.
“This deal will get careful scrutiny,” Michael Carrier, an antitrust law professor at Rutgers Law School, told Yahoo Finance.
“But at the end of the day, I believe it is likely to be approved given an anticipated less aggressive blocking of mergers and the AI angle,” Carrier added.
GOOG shares fell 2.34% on Tuesday following the announcement of the deal, which is Google's largest ever and also the largest ever in the cybersecurity sector.
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