Light Reading

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
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?
SarahReedy
50%
50%
SarahReedy,
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.
SarahReedy
50%
50%
SarahReedy,
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   >   >>
Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (8) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Funkwerk’s on Track With Huawei

3|19|15   |   3:23   |   (0) comments


GSM-R technology specialist Funkwerk and Huawei have forged a partnership that is benefiting both parties, notes Funkwerk's Gottfried Winter.
LRTV Documentaries
How EANTC Tested Cisco's Virtualization Solutions

3|18|15   |   5:49   |   (0) comments


Carsten Rossenhövel, managing director of independent test lab EANTC, tells Light Reading founder and CEO Steve Saunders about the innovative approach his team had to take when validating Cisco's service provider virtualization and cloud solutions.
LRTV Huawei Video Resource Center
Converged Communications: Working Simply & Smartly

3|17|15   |   03.24   |   (0) comments


Edwin Diender, CTO of Huawei's Enterprise Switch & Communications division, outlines the four main pillars of Huawei's unified communications portfolio and explains how the addition of 4K video capabilities has helped Huawei develop a groundbreaking videoconferencing solution.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Hot Topics
Women in Tech Coming Into Focus
Sarah Thomas, Editorial Operations Director, 3/20/2015
Will Open Source Groups Keep Windows Open?
Carol Wilson, Editor-at-large, 3/20/2015
Google Hires Wall Street's Most Influential Woman as CFO
Dan Jones, Mobile Editor, 3/24/2015
The Rise of Industry 4.0
Ray Le Maistre, Editor-in-chief, 3/24/2015
Net Neutrality Suits: Only The Beginning?
Alan Breznick, Cable/Video Practice Leader, 3/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Cats with Phones
Interspecies Phone Love Click Here
"No, you hang up."
"No, YOU hang up."