Google Drops $3.2B on 'Smart Thermostat' Maker
Firm pays $3.2B for Nest
By Rob Quinn, Newser Staff
Posted Jan 14, 2014 2:01 AM CST
The Nest smoke and carbon monoxide alarm is shown at the company's offices, in Palo Alto, California.   (AP Photo/Marcio Jose Sanchez, File)

(Newser) – The Google empire is extending its reach into the heart of people's homes with its acquisition of Nest, a maker of Internet-connected fire alarms and thermostats. Google, which coughed up $3.2 billion in cash for the start-up, says Nest will continue to operate independently, though co-founder Matt Rogers will move to Google, the Verge reports. Google had already invested tens of millions in the firm, whose products include a smart thermostat that adjusts itself after monitoring your behavioral patterns.

The acquisition sparked plenty of jokes about Google Ads on smoke alarms, Wired notes, but Nest promises that customer information will only be used to improve services. The buy looks like a good deal for both sides, adds the New York Times: Nest's founders—Apple veterans who were already rich—gain the corporate muscle needed to expand their business, and Google gains plenty of engineers with hardware expertise, along with a way to learn more about human interaction with connected devices.

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Showing 3 of 19 comments
Ezekiel 25:17
Jan 20, 2014 8:38 PM CST
My dad loved gadgets and picked up a smart thermostat made in the late 70's . It was electronic and analogue. It strapped on top of your old Honeywell dial-o-temp. You put it into a summer or winter mode. Then you put it into a learn mode for a week. It then learned a week's worth of use. Then you switched it into operation mode. Theoretically, it remembered that on week day mornings, your high school kid got up at 6AM and turned up the heat in the winter, made breakfast, and went to school at 7AM to get prime time on the high school's only terminal connected to a university mainframe. In theory, this gizmo should have worked. But mom ripped it off the wall pulling out the Honeywell unit, separating it into three pieces, pulling out the wires, and separating out the mercury bulb. Dad and I make a quick trip to Ace Hardware and put in an updated non intelligent Honeywell dial-o-temp.
LibertyTree
Jan 15, 2014 8:18 AM CST
Google is going to take over the country
odowd80
Jan 14, 2014 11:40 AM CST
I don't blame the founders for selling out. The Nest smoke detector isn't exciting anyone too much and they may have peaked with the thermostat.