Private equity views Big Tech breakups as selling opportunities

The big picture: Private equity execs are beginning to ponder what this could mean for them. Whether it be this particular case, or the future cases that regulators seem determined to bring.

Zoom in: It's no secret that private equity is struggling to exit portfolio companies.

• One reason is that logical acquirers, such as Big Tech, are worried about antitrust lawsuits.
• But if companies like Google are forced to spin off large units, there's a burgeoning belief that those newly independent businesses would feel fewer shackles (particularly if regulators effectively forced their creation).
• There also would be fewer redundancies with the former parent companies.

Yes, but: The odds of the government prevailing, let alone multiple times, remains in "Jets win the Super Bowl" territory. It's possible, but past is often prologue.

The bottom line: The Biden administration has intentionally made it harder for private equity to sell its companies, but might be throwing an indirect lifeline.