“Google Inc. agreed to buy Nest Labs Inc. for $3.2 billion in cash, extending the company’s reach into the home,” John Kell reports for The Wall Street Journal.
“Google said Nest will continue to operate under the leadership of founder and Chief Executive Tony Fadell,” Kell reports. “Google expects the deal to close in the next few months.”
Full article here.
“The deal comes just weeks after reports that Nest was raising around $150 million in new venture capital funding to be led by Yuri Milner’s DST Global, which apparently never happened (and possibly was never going to),” Dan Primack reports for Fortune. “Nest was founded in 2010 by Tony Fadell, a former Apple executive known for his design work on the original iPod.”
“Google also was an existing Nest investor, having led the company’s second round of VC funding in early 2011 via its Google Ventures group,” Primack reports. “To date, Nest had raised over $80 million in VC funding from Kleiner Perkins Caufield & Byers, Shasta Ventures, Google Ventures, Lightspeed Venture Partners, Intertrust and Generation Investment Management. Kleiner Perkins is believed to be the company’s largest outside shareholder.”
Read more in the full article here.
Google’s press release, verbatim:
Google to Acquire Nest
MOUNTAIN VIEW, CA – JANUARY 13, 2014 — Google Inc. (NASDAQ: GOOG) announced today that it has entered into an agreement to buy Nest Labs, Inc. for $3.2 billion in cash.
Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms. Since its launch in 2011, the Nest Learning Thermostat has been a consistent best seller–and the recently launched Protect (Smoke + CO Alarm) has had rave reviews.
Larry Page, CEO of Google, said: “Nest’s founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. 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!”
Tony Fadell, CEO of Nest, said: “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.”
Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US. It is expected to close in the next few months.
Source: Google Inc.
MacDailyNews Take: Yum, ads for propane, heating oil, etc. right on your thermostat!
[Thanks to MacDailyNews Readers “Fred Mertz,” “macwolf,” “Jeff Daniel,” and “Jax44” for the heads up.]
Related articles:
Tony Fadell introduces Nest Protect smoke and carbon monoxide detector – October 8, 2013
Tony Fadell, Father of the iPod: From Apple to Nest Labs, always a designer – July 24, 2013
Apple Store to sell Tony Fadell’s Nest Learning Thermostat, report claims – May 25, 2012
‘Father of the iPod’ Tony Fadell shows off his new project: Thermostats – October 25, 2011
… not cool
Google has enough information about me, they don’t need to know my heating/cooling habits. I love my nest but now I’m wondering if I should look at something else…
Fast!
Will they install a camera in the thermostat?
Will they display adds in a wider thermostat?
Will the play audio adds through the thermostat?
Thermostat??
So now Google can check to see if you are home… 😎
This is horrible news. Maybe the death stab for Nest too.
Who in their right mind will allow Google to watch their every move.
Next, Google will acquire security alarm and camera systems, and maybe wearable sheets, to actually monitor how you perform n bed?
I worked in the electric utility sector until I retired a little over a year ago. We implemented a $150M “Smart Meter” system for a million customers that records electric usage every 15 minutes, and reports it every hour. The system allowed us to see energy theft, marijuana grow operations, and many other unusual consumption situations by automatically flagging them for human review. We were unable to comprehensively monitor for things like that in the past. We could tell when people got up in the morning and when they went to bed. We could tell when they cooked dinner, and when they did their laundry. We could tell when there were extra members living in a household, and when people went on vacation. Of course, that information was strictly confidential, and even we weren’t allowed to look at it without a demonstrated legitimate business reason.
If you want Google to have unfettered access to that kind of personal information about your household, just go ahead and buy a Google enabled appliance or device, such as a thermostat, water heater, air conditioner, etc. As far as I’m concerned, such items will never get near my house.
Yes it seems as usual most people complain about the obvious ‘spying’ concerns when they are revealed while they don’t give a second thought to the real stealth infiltration into their whole lives because apparently Google is so much more responsible with what it finds out than a Government Agency of course.
good for tony, he gots the money now!!!
I realized Nest was starting to get a lot of competition from several companies. These companies already had roads into the home through electricians, heating/cooling and cable companies.
This is now a battle ground and those companies and Tony’s business plan could not compete with a very large sales force like this.
Good for him. Another stupid acquisition from Google.
Crap. I just bought a Nest. If Google Knows, the NSA knows, the IRS knows, and so on.
I thought it said Apple bought Nest. I own the newest Nest thermostat and was looking to get 1 or 2 more with the new smoke detector. Not going to happen now. I will look into the other options first or just leave the old units alone.
Tim and the Apple board, you should have picked it up if Google was in talks with them. I do not want Google or Microsoft in my house. Did not need them before and don’t want them now!!!
Don’t kid yourself. Tim is not a fool. Heavy have better ideas with iBeacon. Did you forget about NFC… He didn’t care for
Bwahahahaha, soon they will possess your soul!
Just bought another Nest and 3 Nest Protects last month, while at the same time closing down my gmail and other ties with Google because I’m really not trusting those guys. This just SUCKS! 🙁
Why couldn’t Apple have bought them??
Apple bought Next.
No. Next bought Apple!
lol, I think it is best stated the Next took over Apple.
It’s all good, I just wish Apple a swooped in and bought Nest. I love my Nest but will avoid Nest product henceforth. I just don’t trust Google.
After your next firmware update on the Nest Protect: “*beep beep beep* Fire in the sitting room. Next time, use an extinguisher from Flaming Joe’s, located 1.2 miles from you.”
Perfect!
great to know! Now i know for sure i won’t be buying a nest thermostat of smoke alarm.
oh and Charter is buying Time Warner cable ……. get ready for a screwing TW customers!!
sigh.
Time Warner has been screwing us for years.
So go buy an AppleTV and an antenna for your roof. That’s what I did. It’s a pleasure to throw all those cable/satellite “special deals” into the recycling bin unopened when I bring the mail in.
I have an AppleTV, but my wife won’t let me cancel the blasted cable.
That’s another reason I’m “Mad As Heck”.
Two Nest Thermostat controllers for sale. 1/2 retail price OBO.
Dude… not even if you gave it to me for free I’ll have it!
Crap, now I am going to have to settle for Honeywell’s smart thermostat.
That’s what I did. It’s not that bad. Just a little annoying.
I saw it at Home Depot. I didn’t look at it closer. However now the Google NEST deal, I will give it a harder look.
I actually passed on the Nest because it was reported that on a power failure the Nest sometimes needed human intervention to reconnect to the network and retrieve it’s programming. Under some circumstances (freezing weather and owner out of town) people had experienced frozen pipes and serious water damage due to this glitch.
Cured the odd behavior of my Nest by assigning an IP address to it via DHCP reservations. Haven’t experienced a single problem reconnecting to the network since.
DAMMIT. Not happy with this.
Even though I have one, I’ll be looking for alternatives now. Google’s data mining is out of control.
Apple should have bought it. Their aesthetic disciplines are more in line with Apple’s than Google’s. They would turn sleek futurism into candy colored cartoony immaturity.
Still using iOS 6 I guess ;-).
Google probably used the money they saved by not giving out a dividend and not buying back $50 billion worth of stock.
Have 2 nest thermostats, one failed out of the box, replaced same day at th apple store no problems since. Was going to go with the smoke detectors, but no way now. Can’t support nest now that it’s inside google, good luck to them however
Damn I was looking forward to getting a Nest also! Cancel that plan
Crap. I really like my Nest.
Whew! I have been following Nest for over a year and nearly made the plunge. Oh, well. I will have more time shutting down my gmail account.
After this, I wonder if Apple retail stores will still stock Nest thermostats.
Apple blew this big time!! I have a Nest thermostat on its way via Apple Store — it will be going back to an Apple retail store unopened!
The only winner in this deal is Fadell and his partners who got a boatload of money.
But actually let’s consider the benefits to consumers with Google running Nest. For those people who keep their thermostats cranked up to 72, you will see lots of ads for sweaters, parkas, and gloves in your browser. In the summer time, if you keep your AC turned off, environment group ads will pop-up on your web pages because you are so environmentally friendly. And, of course, NSA will know when you are home or not home based on how your have your thermostat set. The benefits are endless.
Maybe Apple will do their own full suite of home automation. Maybe Fadell was smart enough to get his money before competing with Apple. It could happen. Or maybe I’m dreaming.
Interview with Fadell… do we believe their SLA will still stand after being bought by Google?
http://recode.net/2014/01/13/nest-tony-fadell-on-why-he-sold-to-google-best-of-both-worlds/
I’ve been intrigued by the Nest thermostat since it was introduced, and while it might be nice to e able to control your house temperature over the net, for anyone on a standard work schedule it’s simply eye candy on the wall. Get yourself a cheap $65 MagiStat with 5 daily settings and that’s all most people need – sleep, wake, leave, return, & sleep. To me, the Nest Thermostat is a solution looking for a problem- and a pretty high priced one at that.
I agree! The place I lived before had a natural gas for heating. The gas burner including warm water was exchanged to new one 7 month before I moved. I was promised to save about 20-30% compared to old one ( I live in cold climate place, no ac). It had an advanced timer that I set to my work schedule. Worked great, warm and cosy in mornings and evenings, cooler at nights and during the workday. It was little short time to evaluate but it saved me more than 30% that I saw. How much was new burner? How much was more advanced timer? I don’t know but never saw a need for some “smart” thermostat for higher comfort, the new burner kept very even temperature indoors even though it only had outdoor and return water temperature metering as control parameters.
This is most disappointing. 3 Nest Thermostats and 2 Nest Protects in my house, none of which would I have bought had I ever thought that Google would buy this company. I can only be thankful that Nest Labs never responded when I submitted my resume to them.
CRAPPERS.
WAS planning on getting one next month.
No more Nest (Android now) products at the Apple store.
I *loved* my Nest thermostat. I will be replacing my Nest thermostat soon. It is only a matter of time before they change their SLA (just like every other Google entity . . . just look at the recent opt-out G+ Gmail debacle.)
Hopefully Apple has something up their sleeve.
And a major Apple insider to boot. I betcha Google was more interested I what he knows about Apple than in Nest. Can the creeps get anymore creepy?