& cplSiteName &

Google to Buy Nest for $3.2B

Dan Jones
1/13/2014
50%
50%

Google could be coming to a home near you soon with its $3.2 billion buyout of smart sensor startup Nest Labs.

Google (Nasdaq: GOOG) revealed Monday afternoon that it will pay $3.2 billion in cash for Nest, a Californian startup that sells a $249 WiFi-enabled "smart thermostat" and has just introduced a smoke detector. The deal is expected to close within a few months.

Nest already has ties to the search giant: Google's venture arm has been a key investor in the startup. Nest has raised $230 million in funding since its foundation in 2010. (See The Best-Funded Mobile Startups of 2013.)

Nest was founded by CEO Tony Fadell and VP of engineering Matt Rodgers. These Apple Inc. (Nasdaq: AAPL) alumni led the team that created earlier generations of iPhones and iPods and developed the iPod software, respectively.

The Nest buyout -- along with Google's efforts on driverless cars -- appears to indicate that the company isn't ready to cede the home automation and monitoring market to carriers like AT&T Inc. (NYSE: T) or the cable MSOs yet. In fact, the dashboard and the breakfast bar are becoming the new frontiers for a slew of mobile and technology companies. (See AT&T Clinches M2M Market Lead With GE Deal, Betting on Smart Homes, and CTIA: Digital Life Pays Off for AT&T.)

— Dan Jones, Mobile Editor, Light Reading

(12)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/14/2014 | 2:48:57 PM
Re: Start of a home monitoring M&A charge?
We'll see won't we?
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
1/14/2014 | 12:52:13 PM
Re: Start of a home monitoring M&A charge?
That's true, Gabriel. Nest does a lot with the data in terms of analyzing it for customers to help them adjust their usage, but in terms of who owns it for commercial purposes, Nest says: Our privacy policy clearly limits the use of customer information to providing and improving Nest's products and services. We've always taken privacy seriously and this will not change.
Gabriel Brown
50%
50%
Gabriel Brown,
User Rank: Light Sabre
1/14/2014 | 1:42:20 AM
Re: Start of a home monitoring M&A charge?
@Sarah Re: "Nest will own the customer data alone." I can see why Google called that out.... but, even so, presumably if it's your gadget, and your house, you would own the customer data, no?
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/13/2014 | 9:47:21 PM
Re: Start of a home monitoring M&A charge?
Re: M&A, there has been a little before driven by iControl, but there are still start-ups coming into this space, as demonstrated by our recent story on GreenWave: http://www.lightreading.com/broadband/networked-home/greenwave-crashes-smart-homes/d/d-id/707161

There's also Alarm.com, Frontpoint, Vivint, among others, who could be targets, or could drive consolidation.
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/13/2014 | 7:40:40 PM
Nest sez
Here's Nest on the deal:

This decision wasn't made on a whim – Google has been in the mix in some way or another for about three years of our almost four-year history. In fact, my first meeting with Google as a Nester was before we'd launched. At the 2011 TED Conference, Erik Charlton and I huddled in a corner with Sergey Brin to show him a video and an early model of the Nest Learning Thermostat – he instantly got what we were doing and so did the rest of the Google team when we showed them. In May 2011, Google Ventures led our Series B round of financing, and in 2012, Series C. Time and time again, Googlers have shown themselves to be incredibly like-minded, supportive and as big of dreamers as we are. I know that joining Google will be an easy transition because we're partnering with a company that gets what we do and who we are at Nest –and wants us to stay that way.

 

Useful blog:

 

https://nest.com/blog/2014/01/13/welcome-home/

 

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
1/13/2014 | 7:37:38 PM
Can Google make the home smart?
The whole Smart Home movement has been on the verge of breaking out for five years now but broadband service providers haven't figured out how to make it simple, scalable and low-cost.  I'll be curious to see what Google plans to bring to the mix. 
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/13/2014 | 7:01:44 PM
Re: I am pessimistic this will work long term
Maybe that's why they want to keep the Nest team independent? Nest has already shown it can develop products.
David Dines
50%
50%
David Dines,
User Rank: Blogger
1/13/2014 | 6:58:22 PM
I am pessimistic this will work long term
I am pessimistic based on Google's history with devices, they just can't seem to get things right.  Also, even in software they can deep six decent products, remember Bump (who knows, maybe that was on purpose)?  I do not see anything new that would indicate that they could make this work.
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
1/13/2014 | 6:13:40 PM
Re: Start of a home monitoring M&A charge?
Ah yes, that makes sense. Google also used to have a dashboard for monitoring your energy use in the home, Google Power Meter. It was announced in 2010, but never took off. I'm not really sure what its smart grid/smart home ambitions are now.
DanJones
50%
50%
DanJones,
User Rank: Blogger
1/13/2014 | 6:08:20 PM
Re: Start of a home monitoring M&A charge?
Pure guesswork on my part but buying to prevent another large rival getting them? Lotsa ex-Apple people at Nest for instance...
Page 1 / 2   >   >>
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
Brocade, Broadcom Merger in Doubt
Iain Morris, News Editor, 7/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
Latest Comment
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.