Filed under: News


Google Acquires Smart Thermostat Maker Nest For $3.2 Billion

Jan 13 2014, 4:21pm CST | by


Three years after redefining what thermostats are capable of, Palo Alto-based Nest is being bought by Google for $3.2 billion.

“Google will help us fully realize our vision of the conscious home and allow us to change the world faster than we ever could if we continued to go it alone. We’ve had great momentum, but this is a rocket ship,” according to a blog post by CEO and cofounder Tony Fadell.

Fadell also said Nest will remain its own distinct unit.

Google has attempted several times in the past to gain access to “connected homes” type systems–including its own thermostat–but this is a huge move for the Internet giant in this field. Smart and connected devices are expected to be a huge market in the next few years. Apple reportedly working on new wearable technology to counter Google Glass, was rumored to be interested in buying Nest. Two of Nest’s cofounders–Fadell and Matt Rogers–are former Apple employees. Fadell is considered the father of the Apple’s iPod media player.

This announcement follows the release of Nest’s second product, a smart smoke detector called the Nest Protect.

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

Recode reported earlier this month that Nest was close to raising $150 million in a Series D round, evaluating it at $2 billion. Altogether, Nest has raised more than $200 million.

This acquisition is also another serious move for Google into the hardware space. Three years ago, Google bought Motorola Mobility for $12.5 billion.

“With the acquisition of Motorola and Nest, it’s showing that Google believes in the Apple vision: Create hardware, software solutions, not just an online platform,” says Forrester analyst Frank Gillett.

Here’s Nest cofounder Matt Rogers talking about what he learned about marketing from Apple: 

Source: Forbes

You Might Also Like


Shopping Deals


<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.




blog comments powered by Disqus

Latest stories

Customized gold iPhones given away as wedding favors
Customized gold iPhones given away as wedding favors
President of Nigeria had his daughter’s wedding and each guests received a gold iPhone as wedding favor
Leaked images show off OnePlus One, StyleSwap covers too
Leaked images show off OnePlus One, StyleSwap covers too
The handset has a minimalistic design approach which falls perfectly in sync with the typical Oppo style
Rufus Cuff seems too big to be a wristwatch wearable
Rufus Cuff seems too big to be a wearable
Once connected, it can be used for mobile data, making calls and sending texts
Audi&#039;s latest hybrid concept
Audi's latest hybrid concept
The prototype is going to be on display at the Beijing Motor Show

The Hottest Photos of Victoria's Secret Fashion Show 2013


Viral Stories the Web