In a speedy series of negotiations shortly after the inauguration of U.S. President Trump, Google successfully concluded a deal to acquire Israeli cybersecurity firm Wiz, with an increased offer of $32 billion, up from the previous offer of $23 billion. The breakup fee was also elevated to over $3.2 billion. The change in the White House administration was a significant factor that helped seal the deal, as it suggested a more favorable antitrust review process under the new leadership.

Wiz, who was contemplating going public, engaged in talks with Google even as negotiations were intermittent. The discussions intensified post-Trump's inauguration, particularly after Fazal Merchant joined Wiz as the CFO. Merchant, along with Wiz's CEO Assaf Rappaport and Google's cloud head Thomas Kurian, played crucial roles in finalizing the deal.

Google's revised offer, which was 39% higher than the initial bid, included a reverse breakup fee exceeding $3.2 billion, equating to more than 10% of the total deal value, payable to Wiz if the acquisition fell through. Despite such a substantial breakup fee, the premium offered by Google was deemed reasonable, considering Wiz's impressive 70% annual revenue growth and annualized revenue exceeding $700 million.

Breakup fees, like the one in this deal, are rare in U.S. corporate transactions but are increasingly being used amidst growing regulatory challenges to large deals globally. It is uncertain whether Google and Wiz engaged with U.S. antitrust regulators before finalizing the agreement.