Nest Protect (image 001)

The Internet giant Google has announced that it has bought Nest Labs, the maker of a family of iPhone-controlled smart thermostat and smoke and carbon monoxide detector devices for connected homes. Nest will continue to operate independently of Google and won’t share customer data with them. Nest was founded by the brilliant engineer Tony Fadell who used to work at Apple where he was charged with the iPod music player project.

Yes, the iPod Godfather now works for Google! The transaction is valued at a whopping $3.2 billion in cash. Google paid quite handsomely to buy Nest, didn’t they? Considering Nest raised about $80 million in venture funding, the acquisition qualifies as one of the most profitable exit strategies among Silicon Valley startups.

iDownloadBlog’s Jeff Benjamin reviewed the Nest learning thermostat and was impressed with its sleekness and functionality, the $249 price point be damned…

A media release posted on the Google Investor website notes that the transaction, pending customary closing conditions and expected to close in the next few months, means “Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity”.

A post Tony Fadell (photographed below) published on his startup’s website calls Google “a rocket ship” that will help a great deal fulfill Nest’s vision of of the conscious home a lot faster. In May 2011, Google Ventures led Nest’s Series B round of financing, and in 2012, Series C.

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Another blog post assures customers that Nest won’t share their data with Google:

Our privacy policy clearly limits the use of customer information to providing and improving Nest’s products and services. We’ve always taken privacy seriously and this will not change.

Was Apple interested in snapping up Nest Labs?

Re/code learned that Google was the only serious bidder so Apple “was not in the mix”.

Here’s Nest on the Ellen DeGeneres show.

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Given that Google’s acquisition are for the most part meaningful (sans notable exceptions like Motorola Mobility) and that the search monster has worked quite well with companies it has acquired, there’s no doubt in my mind they’ll be taking Nest devices to the next level.

Also, this raises the question of platform superiority.

Nest has traditionally supported iOS devices first, but I’m guessing Android will now receive a first-class treatment (can you say, RIP iOS compatibility?).

Thoughts?

  • Anonymous

    How long until you need a Google+ to log in?

    • steve00000

      or until you can setup alerts to notify yours circles of your impending death? :p

  • NotJustin

    Nooooo! Now my nest owns me!

    • s0me

      No, Apple owns your iphone and now Google own your house.

  • Jonathan

    What are you going to buy next Google, the bluetooth toothbrush?

  • Framboogle

    Great so now I will have to auto join google+ when I burn my toast

  • Franklin Richards

    Not again. Google please leave good things alone. Stop forcing Google+ on us!

    • s0me

      Stop using something you dont like, nobody is forcing Google products on you. We have bing now it’s ok.

      • ✪ aidan harris ✪

        Google is quite literally forcing Google+ on people by making it the commenting system on YouTube and constant reminders to change your username to your Google+ profile…

      • Franklin Richards

        Yes. Thank you someone understands.

      • Stephen Goodwin

        if you dislike Google so much, why don’t you just stop using their products then?

        Don’t you have to use your AppleID for your mac for everything Apple?

      • ✪ aidan harris ✪

        Yes but the smartphone and PC market is not comparable to the video sharing market. There’s YouTube, Vimeo and everybody else. No one uses everybody else and only professionals use Vimeo for everyone else they use YouTube. What you’re saying is like saying well doesn’t Microsoft force everything upon its users and the answer there is yes too.
        TLDR; Users like choice and don’t want to have things forced upon them and the unification of Googles services is a prime example of that just because a user uses one Google service it does not mean that they want to use them all…

      • BozzyB

        you can use youtube and google search without signing in.

      • ✪ aidan harris ✪

        If you do that you can’t subscribe to channels (with the possible exception of RSS feeds) or post comments…

  • Next article: Google shuts down thermostat maker Nest.

    • on3simpleclick

      Google just wants to watch the world burn.

  • jack

    bastards

  • 123bob

    Since 2006, Google has stopped innovating and has been buying stuff and then semi-destroying it, if you think about it.

    • Kash Gummaraju

      Wut

  • 123bob

    I totally agree with you when you say:

    Nest has traditionally supported iOS devices first, but I’m guessing Android will now receive a first-class treatment

  • ☁⚡Bläzé4President⚡☁

    This is a smart buy.

  • 123bob

    I found this:

  • Adham

    Definitely not great for the iOS side of things, but I don’t think Nest will kill off their iOS compatibility (it’s essentially what made Nest who they are). However, Android compatibility will be in the near future.

    • Parth Patel

      Yep. He just said in an interview that they are not going to kill off iOS compability.

    • Stephen Goodwin

      Why would they? It will just come second to Android, just like upates on the Chromecast.

  • GaugePrower

    Just as we hard wired 3 nest protects and installed 2 thermostats… RIP Nest Labs. Now my investment goes to SHIT.

    • iThinkergoiMac

      Buying a product that depreciates is NEVER an investment. Unless Nest stops supporting pre-Google products, nothing has negatively affected your purchase.

  • Mhmd Bassam Nasyr

    skynet ._.

  • cd d

    try working for a retailer that sells a nest and pull it out of its anti theft container for the customer what a joke….lol

  • n0ahcruz3

    Darn i should probably just drop out of college do a start-up and sell it to big companies.

    • Kaptivator

      Take a couple entrepreneurship classes while you are there. Go to the networking functions when offered to rub elbows with those who have capital but not talent. Then drop out!

  • mwpitt52

    I am so glad I did not buy a Nest! Google is in bed with NSA and now they will be monitoring your data and movement in your house. I installed the low end Honeywell unit for $100.00 and it works awesome.

    • Stephen Goodwin

      Because they don’t have to report any data over? c’mon, big data is big data…

    • Kash Gummaraju

      And how is this going to stop you from living your life? Every tech company has to hand over copies of data to the NSA it’s government mandated. Either that or they receive some form of punishment. Let me set this straight. The NSA has existed and performed its operations years before Edward Snowden leaked it. All of those years when it was a well kept secret, you were fine with Google and other tech companies collecting your data and storing backups as user feature( just in case something happened). And you felt no threat to your privacy or rights that whole time( except when social network sites were hacked or other information breaches). Somehow hackings of big and popular services and websites didn’t scare you and make you agitated towards Google, Facebook, Microsoft, and Apple, but the knowledge that the government is monitoring your internet and other activity for any signs of threats towards the US suddenly angers you and threatens you? Get real no one cares about the NSA debacle, except we just want no more secrets. The government isn’t selling your info to its enemies or otherwise some terrorist might have done something already with the data. You should be more concerned about hacks such as the recent Steam, Snapchat, and other hacks that can put your private information out onto the internet for all to see and use.

      • mwpitt52

        You must work for Google or your a government spook.

      • Kash Gummaraju

        So everyone who tells the truth must work for Google or the government huh?

  • icezar

    The sooner Apple realizes they need to invest in more important, ground breaking acquisitions, the sooner they’ll regain power over market. They only buy cheap startups while Google assimilates all world changing innovators.

    • Rowan09

      Buying Nest would make no sense for Apple. Is Apple going to start selling smoke detectors and thermostats? All of Apples acquisitions are for mapping and making hardware more efficient. Nest wouldn’t make sense for $3.2 Billion for an Apple purchase.

    • Kash Gummaraju

      Maybe it’s because for Google the whole nexus, GPE, and motorola stuff is nothing more than a way to market and make Android more popular. It’s a company that was built on developing software, experimenting with new ideas, making money off of ads, and finding new talent( as demonstrated by its hiring process- Google hires people based on their individual accomplishments ie. new code, innovative device ideas, etc, not so much on their qualifications and experience). Apple is a purely consumer tech company. They strive to only improve their products at the pace they see fit( Apple doesn’t feel the need to keep up with Samsung and other competitors) That’s why 85% of their products’ features are relatively stable unlike Samsung’s. What Apple needs to do in order to regain market is to not add 6 major new features each number update, but refine preexisting ones and bring our new hardware designs. There’s no way that Apple doesn’t have atleast 20 new and amazing designs for the hardware. They did it with the mac pro and they can certainly do it with the aging design of the iphone. The aging design aspect and realization that many of the software features added in iOS 7 have been in other OSes for a long time and how you have the freedom to do so much more with other OEMs has caused a huge shift away from Apple. Also the high unlocked price is rather ridiculous- the phone costs around $200 to manufacture, assemble, and ship. A $400 base price is reasonable and with the number of loyal fans it’s a surefire way to gain many Nexus users who jumped the boat for premium quality and services for cheap. Essentially the iphone doesn’t offer so much bang for the buck anymore. It can with a new hardware design, refined features, lower price tag, and something truly innovative.

  • jack

    I don’t think that blog statement said they won’t send our personal data to Google… How the hell did you get that?

    “Our privacy policy clearly limits the use of customer information to providing and improving Nest’s products and services. We’ve always taken privacy seriously and this will not change.”

  • Mohammad Ridwan

    A sad day for Apple fanboys…. 😛

    • Rowan09

      Why Nest is going to be available for IOS still?

      • Kash Gummaraju

        Yes it will still support iOS devices, but like chromecast, Android will receive updates and support first

  • Kash Gummaraju

    I do hate the whole G+ integration, G+ never took off, but Google doesn’t want to see its money go to waste( although it wouldn’t make a difference at this point) so its doing this. So long as there’s no G+ integration on my phone I’m good.