Google Buys Home Device Maker Nest For $3.2B
The company's plans are unclear, but the buy gives Google a clear path into your home.By Adam Falk | January 13, 2014
Google’s on your computer. It might power your phone. And with its most recent acquisition, it could control your home.
The Mountain View company announced Monday it has purchased smart home device-maker Nest for $3.2 billion. (Via Google)
You probably recognize the Nest thermostat by now. Or perhaps you’ve seen Nest’s latest, the Protect smoke detector. Either way, The Verge is quick to point out –
“A combination of Nest's home solutions coupled with Google's language recognition could give Google its strongest path yet into your home.”
Sounds good for Google, but as Gizmodo points out –
“It's a move that's sure to irk users concerned about privacy—after all, Nest designs products that connect your home to the internet, and not everyone will be heartened by knowing that the search giant now controls that company.”
According to the terms of the acquisition, Nest will continue to operate independently under founders Tony Fadell and Matt Rogers.
There’s a bit of irony here as Fadell is the guy primarily responsible for the design of the iPod. And now the ex-Apple Senior VP is headed to Google, but he explains in a blog post –
"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.” (Via Nest)
One of the ways it’s been involved: money. Nest has reportedly raised $230 million in funding so far.
And according to Business Insider, Google Ventures is one of Nest’s biggest backers. “There were reports that [Fadell] was looking at raising a fresh round of funding. Looks like he decided to sell instead.”
And for $3.2 billion? That’s an offer that’s hard to turn down.
Unless you're Snapchat, of course. (Via USA Today)