Google buys Nest Labs for a cool $3.2 billion in cash

January 13, 2014

    nest-thermostat

    Google on Monday announced its biggest purchase since the mid-2012 Motorola deal – the purchase of Nest Labs for $3.2 billion in cash.

    Nest Labs produces thermostats and smoke detectors that not only are smart but look good as well. Most interestingly, the founder of Nest is famous former Apple employee Tony Fadell, who’s known for his iPod- and iOS-related work – in fact, he started making Nest thermostats only two years ago, after leaving Apple, and now he will be joining Google.

    It’s not clear yet what Google will do with the company now that it owns it, but we wouldn’t be surprised to hear that Nest products will somehow be integrated in Google’s connected home plans. Fadell will remain on board to lead the company, so we can’t but wonder what products the company will release, now that’s part of the Google conglomerate.

    What do you think about the Nest acquisition? Do you already own a Nest Labs product?

    Show Press Release

    MOUNTAIN VIEW, CA – JANUARY 13, 2014 — Google Inc. (NASDAQ: GOOG) announced today that it has entered into an agreement to buy Nest Labs, Inc. for $3.2 billion in cash.

    Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms. Since its launch in 2011, the Nest Learning Thermostat has been a consistent best seller–and the recently launched Protect (Smoke + CO Alarm) has had rave reviews.

    Larry Page, CEO of Google, said: “Nest’s founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. 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!”

    Tony Fadell, CEO of Nest, said: “We’re thrilled to join Google. 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 will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US. It is expected to close in the next few months.

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    Comments

    • kimoz17

      Hmmm interesting..

    • Luka Mlinar

      YEEEEEESSS!!!! I was planing on buying this thing so i can only imagine it’s gonna get better or and cheaper. And maybe a lot more synchronization options with Android.

    • MasterMuffin

      Soon you can set your room’s temperature just by saying “ok Google, set temperature to 20°C” →cool!

      • Juan Cruz Jr.

        I like that MasterMuffin.

      • Bryan Z

        Very cool indeed but was that worth the billions of dollars spent?

        • Shark Bait

          I can see where that money is going. motorola actually cost google about 6 billion and people said that was a lot….. how is this worth 3 billion?!?! google could easily replicate a thermostat for alot cheaper

          • Bryan Z

            Well yeah Motorola owns so many patents but this company… 3 Billion??

            • Shark Bait

              I dont get it, Google nest sounds like a cool home automation product, maybe thats woeth 3B

            • Bryan Z

              That’s the thing about Google I don’t like at times, they are all over the place when they have so many core products like gmail, nexus (Android), chrome, adsense, google glass that really keep the culture of this company to high standard… stop wasting time with G+, Chrome OS, YouTube Comments etc..
              .

            • bhendrajana

              BE EVIL

    • J_Pod

      Nest was worth $3.2B?

      • Luka Mlinar

        Yes it was :)

      • Stas

        You know what is goodwill?

      • Guest123

        That’s what I said. . . not even $1B. . . some of these companies have been getting purchased at ridiculous prices lately.

        • Cesar Cano

          maybe they buy the talent behind the company more than anything else

    • HitokiriX

      “Ok Google, the temperature in this house is too damn high”

    • Stas

      Of course it will first develop and then provide smart home features. For me it is clear where is looking for Google in near 5-7 years: self driving vehicles and Google integration with another car manufactures, smart homes, probably education field (Google invest there too and has a lot “future ideas” related to this segment).

      • Shark Bait

        their looking to diversify in case their search cash cow ever fails. I think their going to do some good things with their pile of cash……… unlike some companies!

    • apianist16

      Whoaaa! Personally, I wouldn’t have even spent a billion if I were Google, but I’m sure they saw something of worth that they could use. They aren’t this successful without knowing what they are doing.

    • Shark Bait

      so motorola actually cost google about 6 billion and people said that was a lot….. how is this worth 3 billion?!?!

      • Leonardo Rojas

        Cause it has a huge near future potential. As smartphones have invaded homes (and all kind of facilities), smart home equipment will invade us too. Sounds like a lot of cash to me.

        • Shark Bait

          I does have huge potential yes, but it seems something Google could easily replicate if they wanted

    • Leonardo Rojas

      Companies with lots of money buy other companies and make even more money.

      Would Google eventually buy some cellular operator? Just saying. :P

      • Amsakanna

        they don’t believe in cellular network

    • MadCowOnAStick

      on the news here the pic said 69

    • Jason Meeks

      its cool that they are buying them – I own a nest and its great to warm or cool the house before I get home. plus with all the extra money, people, and coders – they could make a killer thermostat and so much more.

    • Cesar Cano

      how cool would it be to work for Google
      hey listen Google i have an idea but some of the patents i need are already taken by this other company
      Google: no problem we’ll just buy the company!

    • Brendon Brown

      I doubt that Nest will only be making thermostats and thermometers for Google. No ways Google would have paid 3.2 billion for just those 2 products

    • Alex Tortolano

      SkyNet anyone? At first, I was getting excited about Google picking up starter companies. But now, after the acquisition of 8 robotics companies including Boston Robotics(who has been funded by DARPA in the past) I am getting a Terminator scenario in mind.

      Before the acquisition, Boston Robotics developed a robot that could maintain it’s balance when bumped our push. That’s a HUGE step. Add home automation. .. Recipe for world domination.

    • Ryan Rupp

      Can you come to missouri and buy charter and replace it with google fiber instead? please?

    • Cqase

      Noooooooooo. Nest was a fantastic company with amazing products and such a bright future. Sadly I think it will loose its way with Google in the drivers seat and become good instead of great. Don’t get me wrong, Google will add some great value and integration to it as well, but I had really pegged Nest to become the premier brand for home automation because they were already doing everything right already.

      • Cqase

        already already. :P

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