Google bought Nest, for $3.2 billion, an investment, which many are still not quite sure whether it is a smart one or not. But the tech giant hardly ever makes mistakes, and surely they have a very good reason for massively overbidding in order to claim property over the makers of the smart thermostat and smoke alarm.
This purchase, according to Nest’s founder, will neither affect the way Nest operates, nor it will change anything about the branding.
Nest is an invention of the Apple alum Tony Fadell. Around two years ago, the company hit the global market with their great products, and it has been just over a year since Nest Labs announced the release of the next-generation Nest Learning Thermostat. Since then, the company has been steadily supplying the gadgets to thousands of households, encouraging everyone to switch to greener, more energy efficient and safer thermostats and alarms.
Now, the general concern seems to be related to the fact that Nest products operate by connecting your house to the internet, and knowing that Google, the biggest and greatest search engine, has full control over this, might be slightly daunting. But according to Nest directors, privacy has always been and still is something that the company takes very seriously. They guarantee that the only reason to use personal information would remain to be the improvement of products and services.
In his statement to the press, Fadell emphasized that Nest could only benefit from Google and their vast resources. The two companies believe that by joining forces they will be able to help even more people save energy and feel safe in their own homes.
Yes, the deal might seem slightly strange, especially since the latest figures indicated that Google’s valuation was only $2 billion (well, “only” being used as opposed to the $3.2 billion, which the company pulled out from the closet). But if we take a closer look, it is actually very very smart. Why invest in something innovative with a questionable future, when you can put your money on an improved gadget, like a thermostat or a fire alarm, that every single home needs, guaranteeing your definite turnover? Now, this is what I call “good business”.
Image (c) Google