On the leading tech podcast Pivot, hosts Kara Swisher and Professor Scott Galloway presented a fascinating hypothesis about Google's timing for potentially its biggest acquisition ever – Israel’s cybersecurity firm, Wiz.
Swisher and Galloway, both well-known figures in the tech and media worlds, suggested that Google might be betting on Donald Trump’s re-election in November to ease the regulatory hurdles of the acquisition. "I think they’ve decided Trump will get re-elected, which will help them with Justice Department investigations and antitrust enforcement," said Galloway on the podcast. "To me, this means Google has evaluated the scenarios and is betting on Trump and the subsequent weakening of regulatory enforcement."
The hosts believe Google assumes a Trump administration would be less stringent on regulatory checks, making it easier to approve the deal. "At the end of the day, the most fascinating part of this acquisition story is that these guys are saying – okay, Trump is going to win," Galloway added.
However, they also noted that the acquisition itself is relatively "cautious" and not expected to attract as much regulatory attention as other acquisitions, partly because there is enough competition in this field. "You don't just say 'no' to these big companies. If they don't integrate properly, that's another matter. But if they're doing it to add something additional to their services, when there is a lot of market competition, I am less inclined to think it requires excessive scrutiny. At least, that's my opinion," Swisher commented.
Galloway concurred, adding: "I think what Google is saying here is that they want to diversify the services they provide and be able to offer a cybersecurity component within their cloud, which I think is very smart."
According to a Wall Street Journal report this week, Google is in advanced talks to acquire Israel’s Wiz for $23 billion. If completed, it would be Google's largest acquisition ever. However, neither company has officially announced that they are close to closing the deal, though sources familiar with the matter indicated that it might be finalized soon.