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Google buys Nest Labs, maker of smart thermostat, for $3.2 billion [u]

post #1 of 339
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Google has reportedly acquired Nest Labs, makers of the Nest Learning Thermostat and Nest Protect smoke detector and a company founded by ex-Apple executive Tony Fadell, for $3.2 billion.

Update: In a follow-up to Monday's news, Re/Code has published an interview with Nest cofounder Tony Fadell, who said access to Google's infrastructure will play a key role in future plans.

"The whole goal is not to be totally independent -- not just they just funnel us money -- this is about something much bigger," Fadell said. He also allayed fears that gathered user data would be shared with Google, saying Nest data will be used exclusively to better Nest products.

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According to a report from Re/Code, Google has finalized the purchase of Nest Labs, the smart home company co-founded by former Apple engineers Fadell and Matt Rogers. Prior to the buy, Google Ventures was a major backer of the startup.

In a subsequent press release, Google said the agreement consists of an all cash purchase that is currently pending government regulatory approval.
"We are excited to bring great experiences to more homes in more countries and fulfill their dreams!" - Google CEO Larry Page on Nest acquisition.
"Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family," said Google CEO Larry Page. "They're already delivering amazing products you can buy right now--thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfill their dreams!"

Aside from Fadell, who many consider to be the "grandfather of the iPod," Nest has a number of former Apple-employees on its staff. In 2012, Nest hired Apple's chief patent counsel Richard "Chip" Lutton, Jr., who now serves as the firm's vice president and general counsel. Most recently, Nest named former director of iPod software Bryan James as Vice President of Product Engineering.

"We're thrilled to join Google," Fadell said in a prepared statement. "With their support, Nest will be even better placed to build simple, thoughtful devices that make life easier at home, and that have a positive impact on the world."

Nest's first product, the Nest Learning Thermostat, was originally an exclusive Apple Store product. After launching a second-generation HVAC controller in , the company introduced its second smart home product in the Nest Protect, an Internet-connected smoke and carbon monoxide detector that can be monitored remotely via an iOS app.

Nest Protect


According to Google, Nest will continue to operate under its own brand, though the buy may have implications to the ongoing iOS vs. Android fight for mobile dominance. Possible outcomes could be tighter integration with Android's voice-activated features or the inclusion of Nest's patented hardware control technology.

Google's outright acquisition comes as somewhat of a surprise as Nest was closing in on a funding round worth some $150 million, enough to net the company a valuation of more than $2 billion. Sources close to the matter said Google was the only serious bidder and that Apple was "not in the mix."
post #2 of 339
1bugeye.gif

Apparently now confirmed, or at least the purchase itself if not the price.
https://plus.google.com/+ArtemRussakovskii/posts/Y8qFWYB72eW
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post #3 of 339
Well... I was looking into buying some of Nest's products. There goes that idea. Last thing I need is Google to try to inject ads into the Thermostat or Smoke Detector. :/
post #4 of 339

Another overhead serve aces right past Apple. Thanks Tim.

post #5 of 339

Google's play here isn't the ads but the immense amount of data that 

Nest's cloud was gathering.   

 

Look for Google to make some more acquisitions within the home automation/green tech 

space and leverage the huge opportunity they have here. 

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post #6 of 339

Not sure if Apple wanted to buy this but I know Apple loves to accumulate Cash  :lol: 

 

Edit: I think Apple did not want this JUNK as they say We are not in business of Junk!

 

http://www.businessinsider.com/nest-thermostat-problem-2014-1


Edited by helicopterben - 1/13/14 at 1:28pm
post #7 of 339
Quote:
Originally Posted by BobSchlob View Post
 

Another overhead serve aces right past Apple. Thanks Tim.

"Innovation is in our DNA"   

 

 

Could have fooled me Tim. 

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post #8 of 339

I seriously hope that Apple is getting ready for something "big". There are countless companies that have a lot to offer to Apple and their products, and they do nothing about it.

 

Just F*cking buy Tesla, Apple!

 

(great move, Google)

 

And Motorola just keeps getting more and more awesome (The best android phone, Moto X. Moto G, etc)

post #9 of 339
Quote:
Originally Posted by sflocal View Post

Well... I was looking into buying some of Nest's products. There goes that idea. Last thing I need is Google to try to inject ads into the Thermostat or Smoke Detector. :/

3am your Nest smoke detector goes off only to have to inform you a minute later that this was just a drill and there are some great deals on oxygen masks and tanks you can keep in your nightstand.

But in all seriousness if you were planning on getting a Nest thermostat before I see no reason not to now. I doubt there will be any ads showing up in these devices.

Quote:
Originally Posted by BobSchlob View Post

Another overhead serve aces right past Apple. Thanks Tim.

I don't follow. Are you saying Apple should have bought Nest?

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post #10 of 339
Quote:
Originally Posted by BobSchlob View Post
 

Another overhead serve aces right past Apple. Thanks Tim.

Um... what is Google's strategy here?

post #11 of 339
Huge deal. I can only think that Apple is working on its own version of home products.
post #12 of 339
Seems like a loss for Apple. Apple probably should have picked them up.
post #13 of 339
Too bad, they had great products. Now Google will assured it will be forever ads serving Beta products like every other Google products.
post #14 of 339
Quote:
Originally Posted by pedromartins View Post
 

Just F*cking buy Tesla, Apple!

Tesla's a ridiculously overvalued company (not counting the premium that will have to be paid on top of that). Apple should stay as far away from it as possible.

 

Google can have it.

 

Square, on the other hand...

post #15 of 339

Oh great. Now Google can sell the information not just on my heating patterns, but on when I'm away (based on energy-saver-due-to-inactivity.)

Thanks Fadell... go party with Eric Schmidt now.

post #16 of 339
Quote:
Originally Posted by kozchris View Post

Seems like a loss for Apple. Apple probably should have picked them up.

Why? Because it's a 'cool' company?

post #17 of 339

Wonder if the founders will stick around or leave and start anew.

post #18 of 339

Interesting acquisition.  I'm a Nest customer (2 learning thermostats, 4 Protects)...Tony Fadell just made a ton of money.  Hopefully Nest will continue to make great things and be platform agnostic.  Given Google's other efforts, I'm not worried.

 

Of course, I'm assuming we'll all now have to link our Nest accounts with Google+ (I wish I were kidding).

post #19 of 339
Quote:
Originally Posted by GQB View Post
 

Oh great. Now Google can sell the information not just on my heating patterns, but on when I'm away (based on energy-saver-due-to-inactivity.)

They already tried it and failed. Miserably. Retired in 2011: http://www.google.com/powermeter/about/

post #20 of 339

That's a lot of money for a couple of very niche products, especially the carbon monoxide thing.

 

Remember, Apple didn't buy Creative or buy a phone maker to debut the iPod or iPhone.

post #21 of 339
Quote:
Originally Posted by hmurchison View Post
 

"Innovation is in our DNA"   

 

 

Could have fooled me Tim. 

Buying = innovation?

Low bar there.

post #22 of 339
The nest is popular, but to me, ecobee is the best. But that sometimes is not what it's about when dealing in the business world.
Maybe nest is better than 2 years ago and perhaps it's caught up with ecobee, but I wouldn't put my money on it - Apple could by ecobee for much less and popularize it - they would also need to update the pathetic app.
post #23 of 339

I don't blame the guy for selling to Google.

 

For 3.2 Billion, how can you?

 

Nest's products seem cool, but I don't think that Apple should have paid anything close to that amount, so let Google have them.

post #24 of 339
Quote:
Originally Posted by anantksundaram View Post
 

Tesla's a ridiculously overvalued company (not counting the premium that will have to be paid on top of that). Apple should stay as far away from it as possible.

 

Google can have it.

 

Square, on the other hand...

Or Amazon can buy Tesla.  Seems like a match made in heaven.

post #25 of 339
Quote:
Originally Posted by anantksundaram View Post
 

They already tried it and failed. Miserably. Retired in 2011: http://www.google.com/powermeter/about/

Doubt it. Put it into stealth mode, maybe.

Google does NOT stop gathering  your data to sell.

post #26 of 339

And now I’ll never buy one (much less the three I’d planned). Ever.

 

Originally Posted by Apple ][ View Post

I don’t blame the guy for selling to Google. For 3.2 Billion, how can you?

 

Because morals can’t be bought.

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post #27 of 339
Looks like it's a little chilly in your house. Would you like to buy some sweaters?
post #28 of 339
Quote:
Originally Posted by anantksundaram View Post

Um... what is Google's strategy here?

Don't understand it myself either. But what is more troubling; why didn't some Google Worshipper explain it to us? Could it be that they want to know at what time we go to sleep so they know what the best time it is to sell advertisement slots on TV, through that sticky thingy?
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post #29 of 339
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Originally Posted by SolipsismX View Post


3am your Nest smoke detector goes off only to have to inform you a minute later that this was just a drill and there are some great deals on oxygen masks and tanks you can keep in your nightstand.

But in all seriousness if you were planning on getting a Nest thermostat before I see no reason not to now. I doubt there will be any ads showing up in these devices.
I don't follow. Are you saying Apple should have bought Nest?

 

Yes, what is Google's strategy? Are they positioning Google to become a new branch of government?

 

They want to own automation systems (cars, homes, personal robots)... but how does that possibly serve their bottom line? I believe they are following the advice of Ray Kurzweil as they evaluate which technologies and companies they should acquire, but these are all nascent industries and there is no proof that any of them are big money makers, nor is there any guarantee any of them will be anything but a massive money sink for the foreseeable future.

 

If Google can continue to fund money losers (as a type of very long term R&D) it will be bad for their immediate and near term, but possibly be of benefit in the long run. Considering none of these companies represent their core competency, I think they are just spending wildly and foolishly.

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post #30 of 339
Quote:
Originally Posted by hmurchison View Post
 
Quote:
Originally Posted by BobSchlob View Post
 

Another overhead serve aces right past Apple. Thanks Tim.

"Innovation is in our DNA"   

 

 

Could have fooled me Tim. 

If Apple had acquired Nest a loud minority would have screamed and stomped their feet 'Why the hell did Apple buy this?'

 

Since Google bought it, and they always make the best IP & product purchases, a different loud minority while lie on the floor holding their breath and threatening to die right after hollering 'Apple is doomed, I say Apple is doomed'.

 

Is this site an incubator for analysts?

post #31 of 339
Quote:
Originally Posted by Apple ][ View Post

I don't blame the guy for selling to Google.

For 3.2 Billion, how can you?

Nest's products seem cool, but I don't think that Apple should have paid anything close to that amount, so let Google have them.

I don't think $3.2B was for a couple of products. This might even be part of their Android@Home project. With that said it may be some time before there's any reliable evidence whether they overpaid or scooped up a bargain.
http://readwrite.com/2013/09/26/nest-future-of-the-connected-home-new-web-api#awesm=~osRyQJUR0XTpuU
Edited by Gatorguy - 1/13/14 at 1:40pm
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post #32 of 339
Quote:
Originally Posted by Damn_Its_Hot View Post
 

If Apple had acquired Nest a loud minority would have screamed and stomped their feet 'Why the hell did Apple buy this?'

 

Since Google bought it, and they always make the best IP & product purchases, a different loud minority while lie on the floor holding their breath and threatening to die right after hollering 'Apple is doomed, I say Apple is doomed'.

 

Is this site an incubator for analysts?

 

Nest is only able to make money because their product is subsidized by the utilities. Relative to less capable products, they are beyond premium priced.

 

In contrast, Apple maintains their premium prices with quality and marketing.

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post #33 of 339
I think home automation is the next big thing, not wearable devices. Right now it's just an amalgamation of so many competing products, lights, alarms, motion detectors, cameras, thermostats, smoke alarms, etc. A company should take all these items and come out with one whole house solution (hardware/software) that all works together under one umbrella. And looks and feels clean, modern and easy to use.
post #34 of 339
Quote:
Originally Posted by anantksundaram View Post
 

Tesla's a ridiculously overvalued company (not counting the premium that will have to be paid on top of that). Apple should stay as far away from it as possible.

 

Google can have it.

 

Square, on the other hand...

Fck Square 

 

Dwolla is the purchase you want if you're talking financial transactions. 

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post #35 of 339
I love my very apple-like Nest and this news troubles me... The Nest is a very un-Android-like device. I hope they don't ruin it.
post #36 of 339
Quote:
Originally Posted by anantksundaram View Post
 

Um... what is Google's strategy here?

On one hand, they could be buying some Apple DNA.

 

On the other hand, they like to accumulate companies and technology that are about data accumulation. 

post #37 of 339

Not really sure why Nest would let Google purchase them to "continue their innovation". What has Google done lately that hasn't failed miserably??? I'm not really concerned with ads in Nest products, but rather this could end up being a product that starts to fail down the road. Sure, it may take a year or two, but once the real Google influence comes to Nest you'll see their products go down the toilet. Google has lost all and any innovation it once had. 

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post #38 of 339
Quote:
Originally Posted by Damn_Its_Hot View Post
 

If Apple had acquired Nest a loud minority would have screamed and stomped their feet 'Why the hell did Apple buy this?'

 

Since Google bought it, and they always make the best IP & product purchases, a different loud minority while lie on the floor holding their breath and threatening to die right after hollering 'Apple is doomed, I say Apple is doomed'.

 

Is this site an incubator for analysts?

I totally think Nest is more appropriate for Google rather than Apple because Google thrives off of info and that's what Nest will give them via their huge datasets. 

 

What I want Apple to do here is let us know what side of the Home Automation are they going to come down on. 

 

Zwave, Zigbee or 6LowPAN or some proprietary format of their own creation?   As much disdain as I have for the grandiose "Internet of Things" hyperbole being spouted off daily I do think this year is the year to lay down the tracks and start building a more connected world. 

 

Google's made one step here ....it'll be interesting to see what other synergistic companies they acquire going forward.

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post #39 of 339
Quote:
Originally Posted by Tallest Skil View Post
 

Because morals can’t be bought.

 

I agree, but for 3.2 Billion, I'd sell to the devil, which I guess is what happened in this case.

 

Do no evil.

post #40 of 339

Fell sorry for all the people who bought Nest products.

 

I cringe just thinking about what kind of data Google will collect and they will use it for.

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