Google's aborted deals show antitrust's long shadow over tech

Core Insights - Google's recent interest in acquiring Wiz Inc. for $23 billion and HubSpot Inc. for $25 billion ended in failure, with Wiz opting for an IPO instead [1][6] - The failed negotiations were influenced by a software issue from CrowdStrike that heightened the demand for cloud security solutions, benefiting companies like Wiz [2] - Antitrust concerns have significantly impacted Google's ability to pursue acquisitions, with increased scrutiny from regulators in the U.S. and Europe [3] Company-Specific Insights - Wiz rejected Google's offer partly due to fears of a lengthy regulatory approval process, reflecting the current climate of antitrust scrutiny in the tech sector [3][4] - Google's last major acquisition attempts have faced challenges, including Adobe's failed $20 billion bid for Figma and Amazon's abandoned bid for iRobot, both due to regulatory issues [3] - The potential acquisition of Wiz would have been a strategic move for Google's cloud division, which is currently third in the market, but the deal's collapse has redirected Wiz's focus towards achieving $1 billion in annual recurring revenue and pursuing an IPO [6][5] Industry Insights - The tech sector is experiencing heightened regulatory scrutiny, with authorities increasingly targeting large tech firms for their market power [3] - The trend of startups opting for IPOs instead of selling to larger tech companies is growing, as seen with Wiz and Figma, indicating a shift in strategy among venture capitalists and startups [7] - The competitive landscape in cloud services remains intense, with Google actively expanding its cloud offerings to compete against Amazon Web Services and Microsoft [5]