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Nest CEO: "Nest is not for sale"
Nest’s products have been a hit in the smart home market. Its thermostat, smoke detector and camera are among the best of their kind, but it seems that hasn’t been enough to bring the company where it should be. Nest is having a hard time meeting Google’s (now Alphabet) expectations in terms of sales.
This, as well as Nest’s demanding culture and product roadmap, drove former CEO Tony Fadell away from the company just last week. His spot was taken by Marwan Fawaz, who was once put in charge of Motorola Home… in order to sell it. Is this the same fate that Nest will see amidst all this chaos?
Fawaz has written a letter to his fellow Nest workers, ensuring the company is not up for sale and there are still plans for growing.
Joining the NestHi Nesters,It’s been a whirlwind few days! Thanks to all of you for the warm welcome on Friday. I’ve had the chance to meet many of you in passing and over GVC, and I was able to join many of my team’s direct reports for their staff meetings. Your collective passion and sense of mission are immediately apparent and contagious. It’s never easy to be the new guy, but Nesters have been incredibly welcoming.I mentioned on Friday that my skills and passion are around scaling great companies — and products — to reach more customers. It’s what I like to think about and what I like to deliver. My only agenda for Nest is to scale and grow with innovative products. Nest is not for sale, and scaling and innovation aren’t mutually exclusive.I’m counting on each one of you to help maintain our culture of disruption, the source of the Nest magic. This culture is how we’ll continue to lead in the connected home space, continue to attract the best talent around, and help save even more energy and lives.Many of you have asked if there’s a change in strategy or direction. There is not. We need to focus on delivering the great roadmap we have in place, beginning with [redacted]. This is how we’ll reset the narrative about Nest, reminding our customers, partners, and competitors of how we became the #1 connected home brand in the first place. Nest understands design, customer needs, and the importance of home. I know you will all work hard in the coming weeks to ensure we continue to surprise and delight our customers and I’m very excited to be a part of it.Rightfully, many of you have questions, and I look forward to addressing them candidly and in person. We have a number of upcoming face-to-face meetings, from Lunch & Learns to office visits to department All-Hands. Stay tuned for details of upcoming opportunities to meet and share thoughts, concerns and ideas.Thank you,Marwan
Sources claim Alphabet did consider selling the company last year, but they have changed their mind and are looking to continue investing in it. Meanwhile, workers and fans can rest assured that Nest will continue operating under Alphabet and their plans for future products are still standing.
Is this the right decision? I am no expert in the matter, but Nest was a $3.2 billion investment for Google. I am sure they wouldn’t risk their cash too much. As a consumer, I say Nest Labs has awesome products, as well as plenty of potential as home automation continues to evolve. But tell us what you think!