Google Buys Nest For Hardware Design

Jan 14, 2014 • 8:10 am | comments (5) by twitter Google+ | Filed Under Google News & Finances

NestGoogle announced yesterday that they acquired Nest for $3.2 billion (yes billion) in cash. You read that right, they spent about 5% of their cash on hand to acquire a startup company that builds smart thermostats and fire detectors.

Why? Is it so Google can know the temperature in your house? Is it so Google can pitch you products based on your sleep patterns? Is it to completely freak out Google consumers?

I think not.

If I had to guess, it is about acquiring a company that knows how to make Apple-like hardware. Google does awesome software but their hardware isn't at the level of Apple. The iPhone vs Nexus device, no one would honestly say that holding a Nexus smartphone feels as good as holding an iPhone. If you do, you are lying. The software or features might be superior but the hardware feel is not.

Anyway, is that worth $3.2 billion? I guess to Google it is.

Forum discussion at Google+ and WebmasterWorld.

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01/14/2014 01:39 pm

...or, is it to remotely increase the temperatures in the offices of companies who haven't yet bought adwords to unbearable levels? Hmm!?!??! We're onto you, Google!

Alexander Hemedinger

01/14/2014 02:51 pm

And now Google will control more of us. Eventually Google will control the world! :P

Nicholas Chimonas

01/14/2014 03:45 pm

I suspect this is a move towards creating autonomous Google Homes, smart homes, etc.


01/14/2014 04:00 pm

Barry, I think the title of the post is very misleading. The information that Google collects from internet connected devices in homes and businesses will give Google even more data to profile users. The story at highlights some of the privacy concerns I personally have, but not all of them. With all of the data Google is collecting online, on the go (ie. Android mobile operating system, Google Glass) and now in the home, how are people supposed to trust one for-profit corporation with such personal and detailed information about our lives? What's next, Google chip implants in humans?

Barry Schwartz

01/14/2014 04:00 pm

This is my opinion.

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