Investing.com

Dealmaking in the technology space is set to “significantly increase” as Donald Trump replaces Lina Khan as the head of the Federal Trade Commission (FTC), according to Wedbush analysts.

Trump named Andrew Ferguson as the new chair of the FTC. Wedbush notes that Ferguson, a Republican and current member of the agency, is expected to take a less aggressive stance on regulating large US companies, particularly in the tech sector.

> "We expect Ferguson to continue to have a keen eye on the tech world and antitrust swirls, however he will clearly roll back Khan's head scratching anti-tech agenda including ending efforts to regulate AI and abandoning a brutal standard for any merger of any size for the tech world,” analysts led by Daniel Ives said in a note.

Analysts view Ferguson's leadership as a significant positive for the technology industry, anticipating reduced regulatory pressures on major tech firms.

They believe that with Khan’s departure, the likelihood of breaking up large tech companies has diminished. Although the Department of Justice (DOJ) will maintain its focus on antitrust cases, Wedbush argues that many of these efforts will likely result in “more bark than bite.”

> "Christmas came early for the tech world," Wedbush emphasizes, noting that this change could accelerate mergers and acquisitions among major players like Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Tesla (NASDAQ:TSLA) as they aim to strengthen their competitive edge.

"We believe there will be major shifts in policy against Big Tech over the coming years with Trump in the White House and Khan out at the FTC," they added.

The investment firm also highlighted the potential influence of Elon Musk, who they believe will have "a front row seat in the Trump White House."