Google to acquire Nest Labs for $3.2 billion

Google is making yet another big business acquisition and this time it's actually hyping up the deal in a press release. Today, the company announced it will buy Nest Labs for $3.2 billion in cash, with the deal expected to close sometime in the next few months if it is approved by U.S. regulators.

Nest Labs was first started in 2010 by two ex-Apple engineers, Tony Fadell and Matt Rogers, who helped to develop the first iPhone. In 2011, the company announced its first product, the Nest Learning Thermostat, that is supposed to help regulate the heating and cooling of homes and businesses automatically, and thus conserve electricity in the process. In 2013, the company came out with their second product, the Protect smoke and carbon monoxide detector.

Today's press release from Google states that Nest Labs will continue to sell its two products under its own brand name and that Fadell will stay on as the division's leader. He is quoted as saying, "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.”

Image via TechSpot

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Just waiting for the consumer screw over day when installing a new thermostat requires an internet connection.
Is about control and the consumer continually is losing it under the guise of cool new technology.

Am I the only one who wants LESS connectivity. Like I need someone hacking into my house and ruining everything.
If it aint broke dont fix it. This kind of garbage is stupid beyond stupid.

Just my opinion.

So now google wants to know how warm different homes are. cause that could never be used for nefarious reasons. jk it would be awesome to be able to include that information into your ever expanding Google Portfolio of services

The only issue with that is that it's a great product right now (hyped or not hyped) and the idea of any big company owning it and making decisions that could kill or worsen it aren't unfounded. It'd suck to see Nest require a Google account, or Google+ tie-ins and seeing it suffer. Just not buying it doesn't mean a better alternative exists.

Quikboy said,
The only issue with that is that it's a great product right now (hyped or not hyped) and the idea of any big company owning it and making decisions that could kill or worsen it aren't unfounded. It'd suck to see Nest require a Google account, or Google+ tie-ins and seeing it suffer. Just not buying it doesn't mean a better alternative exists.

I think we are getting a little ahead of ourselves when saying it's going to require a Google account.

As for alternatives, you can always get a Nexia approved thermostat like I have.

Every Nest Thermostat costs $250 and Google buys the company for $3.200.000.000. So Google should sell 13 millions of thermostat just for recover the money invested (and only if every thermostat cost $0 to produce).

It makes no sense.

When you're a company like Google, this kind of acquisition is a godsend for 'nonstandard' accounting practices.

I mean, c'mon, we all know you cannot buy DoubleClick, Motorola Mobility, Waze, and Nest for billions of dollars and actually expect that much in return! (http://en.wikipedia.org/wiki/List_of_acquisitions_by_Google) It's all about accounting practices, tax write-offs, and artificial revenue inflation.

[Think about this last bit for a moment... basically, every division/entity reports activity and/or sales for the same singular activity by some outside entity. This is simply another accounting scheme.]

By default, any G+ user can directly access your Nest device, and change the temperature of your house, even if you've never granted them access. Don't worry, it'll be opt-out.

Dot Matrix said,
By default, any G+ user can directly access your Nest device, and change the temperature of your house, even if you've never granted them access. Don't worry, it'll be opt-out.

LOL!

So Google wants to get in to home automation it seems. At the same time, they're pursuing cars/transportation. I bet their next acquisition will be something like the Sleep Number bed. 24/7 Google.

Google's been interested in 'home automation' for years. They used to have their own web service platform for this sort of thing... the problem was nobody uploaded their data into google's cloud. Google, not to be outdone, has obviously decided to buy somebody else's products in order to acquire data to index.

Yeah I figured it was something like that. I am not very comfortable with that level of intrusion by an ad marketing company.

Enron said,
Yeah I figured it was something like that. I am not very comfortable with that level of intrusion by an ad marketing company.

THIS.

ZipZapRap said,
$3.2 billion for thermometers.. did they not learn from their Moto purchase?

More than thermostats.

As for their Moto purchase, I know many people who love their Moto X.

Dinggus said,

As for their Moto purchase, I know many people who love their Moto X.

i know many people who love Windows Phone too, but it's not exactly setting the world on fire (I'm one of them)

BigBoy said,
That little screen will show ads?

Nope, it'll start influencing your purchases directly using subliminal audio.

neufuse said,
anyone remember Google's first foyer into the home market? The google power meter site? how long did that last?...

Were these power meters installed in the foyers?

Romero said,

Were these power meters installed in the foyers?

no, google power meter was a website that you could enter your home energy usage into... basically did the same as what this thermostat did just not controlling the thermostat... 3rd party meters could talk to it and give it data... google basically just killed it off saying no one wanted to control energy usage from the web...

Now I'll be offered a scarf when I turn up the heat. Or receive an e-coupon for a home restoration company when my house is on fire. Perfect.

MrHumpty said,
Now I'll be offered a scarf when I turn up the heat. Or receive an e-coupon for a home restoration company when my house is on fire. Perfect.

LMAO!

This fits in with Google's old idea of home automation. As a Nest Thermostat owner, I am a bit concerned about it though because Google cancelled their support for home automation previously and they have a pretty significant history of killing off subsidiaries as well as their projects.

Good for the people at Nest making a boatload of money, but I do not see how the company was worth that much (okay, I do: harvesting our home's data and correlating with our online presence!). The added funding pool from Google could be a boon for Nest in allowing them to build even more interesting household gadgets.

pickypg said,
This fits in with Google's old idea of home automation. As a Nest Thermostat owner, I am a bit concerned about it though because Google cancelled their support for home automation previously and they have a pretty significant history of killing off subsidiaries as well as their projects.

Good for the people at Nest making a boatload of money, but I do not see how the company was worth that much (okay, I do: harvesting our home's data and correlating with our online presence!). The added funding pool from Google could be a boon for Nest in allowing them to build even more interesting household gadgets.

Do you think Instagram was worth $1 billion or SnapChat is worth $3 billion?

Nest came out with 2 versions of their thermostats and just recently Nest Protect. I'm sure next on their list is controlling lights.

I just recently installed the thermostat in my parents house and plan on installing the Nest Protect next.

So far it's shown it's been worth every penny, as long as Google doesn't try to put Android on it...

NateB1 said,
Yikes. I better get the Nest thermostat now, before I'm forced to use my Google+ account with it.

"Your temperature will display after a quick message from our sponsor..."

Dot Matrix said,

"Your temperature will display after a quick message from our sponsor..."

When your temperature goes over 30C, a Dairy Queen ad pops up.

Dot Matrix said,

"Your temperature will display after a quick message from our sponsor..."


or for nest smoke detector will say. your house is on fire. create your google plus account to inform your closest fire department.

Richio said,
Bit much for a company I've never heard of... Same value as Snapchat.
Nest makes incredibly simple, learning thermostats that can be controlled remotely.

I honestly do not see how Nest was worth $3.2 billion, but I absolutely love my Nest Thermostat. Frankly, I don't see how SnapChat is worth even $2 billion given that they're a glorified texting service.

Nogib said,

Fixed.


If you have ever used nest you would not say such thing. for the electricity money it saves for you and convenience it has its actually very affordable

pickypg said,
Nest makes incredibly simple, learning thermostats that can be controlled remotely.

I honestly do not see how Nest was worth $3.2 billion, but I absolutely love my Nest Thermostat. Frankly, I don't see how SnapChat is worth even $2 billion given that they're a glorified texting service.

How long does it take to recover the 3.2 Billion? That is A LOT of money for Nest imo...

Nogib said,
Fixed.

I'm getting sick of people like you. They're one of the best. I'm replacing plenty with Nest when I move again.