Google buys Nest Labs for $3.2 billion

HecticArt

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I had seen this before, but couldn't remember if we had posted it here.
Google buys Nest Labs for $3.2 billion - Jan. 13, 2014


NEW YORK (CNNMoney)
Google is making another big bet on hardware.

The search giant announced Monday that it's buying connected device maker Nest Labs for $3.2 billion in cash.

Nest, led by former Apple (AAPL, Fortune 500) designer Tony Fadell, develops "smart" home appliances like thermostats and smoke detectors that can program themselves and communicate with smartphones.

Nest will maintain its brand name and continue to be led by Fadell, Google (GOOG, Fortune 500) said, adding that the deal will likely close "in the next few months."

Fadell told Fortune's Dan Primack that Google "made a very strong pitch for how we could have all the resources of a large company while retaining the independence of a next-generation Nest."

"This allows us to accelerate and stay in front of the coming wave of products for what we like to call the conscious home," Fadell said.

Google CEO Larry Page said in a statement that Nest is "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!" Page said.

Google shares ticked up 0.7% in after-hours trading Monday.

Related: Your Hackable House

Google was already an investor in Nest via its Google Ventures arm. The acquisition follows a series of efforts by Google to break into the connected home business, none of which have proven particularly successful.

The company's Android@Home platform, designed to allow users to control home appliances via Android smartphones and tablets, never caught on. There was also the Nexus Q streaming media device, which the company put on hold back in 2012.

More recently, Google unveiled the Chromecast, a cheap device for streaming music and video on a television.

The "connected home" was a hot topic at last week's Consumer Electronics Show in Las Vegas. The market for such devices is estimated to hit $10 billion this year, growing to $44 billion by 2017, according to wireless industry group GSMA.

Google took a big step into the hardware business in 2012, when it closed its acquisition of Motorola Mobility for $12.5 billion. That purchase helped lay the groundwork for devices like the Moto X smartphone.
 

hyson

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Oct 19, 2008
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I looked at installing a Nest in my house... now I definitely won't.

Is anyone else wondering how exactly one delivers 3.2B in cash? Suit cases? Uhaul boxes?
 

memebag

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I looked into Nest a while back. I could never figure out why it was worth that much money. My current thermostat is programmable. I don't see any reason to access it remotely.
 

HecticArt

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Even with a programmable thermostat, the Mrs still turns the damn thing up when she leaves the house, so that it's warm when she gets home.....
 

Jimr

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I looked into Nest a while back. I could never figure out why it was worth that much money. My current thermostat is programmable. I don't see any reason to access it remotely.
I never understood the reasoning either. I have a programmable thermostat that can learn how the house heats and make adjustments accordingly (it will move the start/end time of a cycle so that it reaches the temp at the time requested most efficiently). The cost of that thermostat was much lower than a NEST and provides much more functionality.
 

greenearth

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I heard the nest leans your habits. If you turn it up during the day, and make it colder later, the nest learns and does it for you. I heard someone is saving money using it.
 

Jimr

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I heard the nest leans your habits. If you turn it up during the day, and make it colder later, the nest learns and does it for you. I heard someone is saving money using it.
It does but you can get a programmable thermostat for a fraction of the cost. It will save money at the same rate as a nest.

Sent from my Nexus 5 using Tapatalk
 

memebag

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It does but you can get a programmable thermostat for a fraction of the cost. It will save money at the same rate as a nest.

Sent from my Nexus 5 using Tapatalk
Exactly. There's no need for a learning thermostat when I can tell a normal thermostat exactly what temperature I want when.
 

semipenguin

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Given the way most everything Google is free, but with adds, maybe the price will go down, but you're have adds :idea: