Google buys Nest Labs, maker of smart thermostat, for $3.2 billion [u]
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.
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.
"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.
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."
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.
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.
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."
Comments
Apparently now confirmed, or at least the purchase itself if not the price.
https://plus.google.com/+ArtemRussakovskii/posts/Y8qFWYB72eW
Another overhead serve aces right past Apple. Thanks Tim.
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.
Not sure if Apple wanted to buy this but I know Apple loves to accumulate Cash
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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
Another overhead serve aces right past Apple. Thanks Tim.
"Innovation is in our DNA"
Could have fooled me Tim.
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)
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?
Another overhead serve aces right past Apple. Thanks Tim.
Um... what is Google's strategy here?
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...
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.
Seems like a loss for Apple. Apple probably should have picked them up.
Why? Because it's a 'cool' company?
Wonder if the founders will stick around or leave and start anew.
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).
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/
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.
"Innovation is in our DNA"
Could have fooled me Tim.
Buying = innovation?
Low bar there.