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Google Acquires Nest for $3.2 Billion (Updated)

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Google announced moments ago that it has acquired Nest Labs for $3.2 billion in cash.

For those not familiar, Nest “reinvents” home products that you either neglect, ignore, or don’t realize could be awesome and then makes them something you can’t live without. They are the creators of the Nest Thermostat and most recently, Nest Protect (smoke alarm). I reviewed the Nest Thermostat earlier in the year, calling it my favorite Android accessory, thanks to its ease of use, automation, and potential energy saving prowess. We have Nest Protects in house and will be doing some sort of review or overview in the near future. 

In case you missed our story back in mid-December, we received word from sources suggesting that Google was in the middle of testing a similar smart home, thermostat application called EnergySense. The UI of the product looked identical to that of Nest, which we noted at the time. To see Google decide to buy Nest is somewhat surprising, yet not all that surprising. Nest is doing amazing game-changing things with home products, an arena Google has been eyeing since its introduction of Android@Home some three years ago.

According to the press release, Nest will continue to operate under current leadership and with its own “distinct brand identity.” Google hopes to help bring Nest to homes in more countries. Nest said that they will now be even “better placed to build simple, thoughtful devices that make life easier at home, and have a positive impact on the world.”

Whoa.

Update:  Here is a Q&A posted to Nest’s site concerning the acquisition -

Will Nest continue to support iOS so I can have the Nest app on my iPhone or iPad?
Yes, absolutely. We’ll continue supporting iOS, Android and modern web browsers so you can check in on your home and control the temperature from wherever you are.

Will Nest and Google products work with each other?
Nest’s product line obviously caught the attention of Google and I’m betting that there’s a lot of cool stuff we could do together, but nothing to share today.

What will happen to the Nest warranties on products?
No change there – we stand behind our products like we always have.

Will I still be able to find Nest products at my local retailer?
You bet. We intend to continue selling through the same partners in the US, Canada and the UK.

Will Nest customer data be shared 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.

Update 2:  Nest CEO Tony Fadell had this to say in a blog post -

So if things are going so well, why did we decide to partner with Google?

Google will help us fully realize our vision of the conscious home and allow us to change the world faster than we ever could if we continued to go it alone. We’ve had great momentum, but this is a rocket ship.

Google has the business resources, global scale and platform reach to accelerate Nest growth across hardware, software and services for the home globally. And our company visions are well aligned – we both believe in letting technology do the hard work behind the scenes so people can get on with the things that matter in life. Google is committed to helping Nest make a difference and together, we can help save more energy and keep people safe in their homes.

Nest will continue to be Nest, with its own distinct brand identity. We will continue to reimagine and reinvent the unloved products that proliferate in our homes, just as we have since we started. We are simply going to get our products into the hands of people around the world – faster.

Press Release

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.

About Google Inc.

Google is a global technology leader focused on improving the ways people connect with information. Google’s innovations in web search and advertising have made its website a top internet property and its brand one of the most recognized in the world.

  • chris_johns

    I hope this makes their products a little more affordable…since they just hit the lottery

  • Chad Frankos

    Will this make my phone faster?

  • Trevor

    This is awesome. Google’s truckloads of money should help Nest develop some pretty cool stuff. And I imagine that Android Integration will be great from here on out too. Automatically turn your heat/AC on when you get close to home (and off when you leave)? I’ll take that.

    • Adam Marr

      Hope so, thats the one thing that drive me a bit crazy about my 2 nest thermos, why it can’t use the phone app to help determine home/away…

  • TC Infantino

    We are one step closer to having Jarvis as a home Personal Assistant! I can’t wait.

  • EngineerGunter

    Great… now your thermostat is going to show you an advertisement before you can adjust the temperature…

    • Rich Nahra

      Bravo.. i was thinking the same thing. “you can skip this in 5, 4, 3, 2, 1″

    • yankeesusa

      Thats what I was thinking. he he. I hope not. I hope they stay true and keep it separate. So far everyone that I know that has Nest loves it and most of them have lowered their energy bill. I’m just waiting for price to go down or I will just get the honeywell wifi smart thermostat which is pretty cool too.

  • Jamen Tyler Lang

    Will you please add z-wave support sometime, I’ve been waiting for almost 3 years.

  • Grapes

    Hopefully they will drop the price in the future. $250 is expensive for a thermostat especially when you need two.

    • yankeesusa

      Agree. Although it saves money and looks cool and gives you many options if your good at it you can buy a $30 programmable and do it yourself. Yes it will take you some time to program it but you save a lot of money. Maybe they’ll take the chromecast model and price it really low, he he

  • Brian Menius

    The t-stat was hinted to be the “brain” for bigger and better things down the road. Nest Protect doesn’t really use the t-stat as a central contact point, but I trust that this development will mean Nest will be able to fully realize that dream. The t-stat is ZigBee compatible.

    http://techcrunch.com/2011/12/22/nest-arm-zigbee/

    I have no problem with this. I look forward to future developments from Nest!

  • Jonathan Williams

    Matt Rogers went to my high school. Graduated a year before I did.

    • Sankyou

      How does that make you feel?

    • Chris B

      Then I found $20.

  • MistaButters

    I wish I lived some place where I actually needed to use the thermostat. Then I would buy a Nest immediately.

  • Cowboydroid

    I’m betting the current Honeywell lawsuit is a huge factor in this move.

    • Mike Hilal

      The apple guys at nest should know what to do….they’re the kings of that

  • tharealoc

    Fingers crossed for a sale to celebrate the acquisition!

  • Col_Angus

    The rage over on Apple Insider is priceless. haha

  • Jeff Campanozzi

    Gearing up for Google Glass home functionality?

  • Daeshaun Griffiths

    After the kernel update…android 5.0 is gunna be wild.

  • http://www.googlepants.com/ Wizard of Odyssey

    Still waiting to see what Google will do with Waze. If they leave Nest alone, as they have done so far with Waze, no problem here, I want them to survive and thrive.

  • Teng Taing

    awesome i always wanted a nest

  • Zach K

    Nest – A Google Company. Nest products will now require a Google+ account to setup and access the features remotely. Warnings will be sent through your google+ account and app directly to your Chromebook, Chrome Browser, ChromeCast, and through your internet connected devices, through your Google+ App on the new Nest Alert Tab ;-P

    In all honesty – love this deal!

  • enigmaco

    I can picture it now “ok google now lower the temperature to 65 degreess”….”lowering temperature to 65 degrees”

    • michael arazan

      Will my thermostat have ads running while I’m adjusting it? Will my lamps flash when I get a text message or text now?

      • yankeesusa

        I don’t think they will ruin it like that but I’m sure at some point google will offer some awesome features that can only be accessed by attaching your nest to your google+ account.

    • JRomeo

      on the nexus5, you only need say “ok google” followed by your command, not “ok google now”

      • enigmaco

        Ok I was just using it as a example

  • http://www.chrome-focus.com/ Aaron Hurt

    Epic.

  • itsgonnalast

    Good to hear that Android@home isn’t dead.

  • Ben Murphy

    Google all the things.

  • trixnkix637

    I am very convinced that at some point Google/Android will evolve into what we know as SkyNet. Pretty certain of that.

    • Fresh360

      Oh silly, silly @trixnkix637:disqus everyone knows Google is already SkyNet and that they will eventually turn into The Borg.

      • hfoster52

        Resistance is futile.

    • Sankyou

      As long as it makes for a better movie than Salvation – I’m in.

    • Kevin

      SkyNet wishes it could Google.

    • joejoe5709

      Or V for Vendetta. Or Eagle Eye. Or a mix of all three. Until then, I love Google.

      • Adam Elghor

        I liked Eagle Eye…

      • enigmaco

        Don’t forget minority reports

    • MJ

      The military is already becoming Google’s largest customer. Google also recently purchased it’s eighth robotics company in the last 6 months.

  • DaveTea

    Always liked the Nest thermostat but its just too expensive, went with a $100 wifi thermostat and its been one of the better gadgets we have ever purchased. Its awesome to be able to set temps from your bed using a tab or phone. Hopefully Google finds a way to being the cost of the Nest devices down to a more reasonable level.

    • envoy510

      Which one did you go with?

      • DaveTea

        One of the CT-30 units that is sold under a few different brands. It was $100 but it looks like the pricing might have gone up on them since I purchased it.

        • yankeesusa

          Although for the price the ct30 is nice it requires an external module to use the wifi and you have to program it yourself. Although many can do that and do it very good the learning thermostats can be a bit more accurate. Although the honeywell wifi model is pretty close at being at or above the Nest. I just think the nest is so simple to use and that is why it’s such a high seller.

          • DaveTea

            The one I purchased for $99 two years ago included the wifi module, why they are more expensive now is beyond me since we bought ours in December of 2012 when demand was also high for replacement thermostats. I dont think I would pay $150 for one now but I would pay $99 again. Its not very ‘smart’ but the iOS and Android app that controls it makes it very easy to program and if you make temp changes to the program it will let you save the exception as part of the revised program, so it is semi-smart..you just need to be involved. Its a good unit for people that have basic requirements like us. We are near the beach in So Cal so we dont use AC and only require heating for perhaps 3 months a year. If I lived somewhere that required HVAC 24-7 I would certainly invest in a Nest unit.

    • Cowboydroid

      You can get a first gen Nest for only about 50 bucks more, and it’s far simpler and more intuitive to use. The money you save on energy easily pays for it.

      Some energy providers even give it to you for free on certain plans (usually a slightly higher cost of energy, though. But again, energy savings pays for it)

      • DaveTea

        The one I installed is pretty simple and intuitive and since I live in an area that does not require AC, only heat a few months out of the year, spending 30% more for something to do the same thing didn’t seem like money well spent. Pretty sure that when I purchased the unit we have now the cost difference was quite a bit more than 30% too, I think it was about twice the price but it was 2 years ago so I am not real sure. The Nest unit is nice and I would certainly own one but for our needs it just wasn’t worth the extra money at the time.

    • yankeesusa

      Which one did you get? So far most reviews are bad on the wifi thermostats other than the honeywell wifi smart one at home depot.

      • DaveTea

        Unless things have changed the Honeywell is just a re-branded CT-30 that is made by ‘Radio Thermostat Company Of America’ and is the same one we purchased for $99. Some of the older units have funky wifi modules that some people have issues with, ours has not given us any issues so I guess we got one of the ‘good’ ones. The setup process requires some very specific steps and I think many people cant quite follow them so its hard to say how many of the bad reviews are due to flaky hardware and how many are user error. All I can say is ours has worked fine, only problem during setup was I had to run new wiring from the thermostat to the heater as our old thermostat didnt require a 12V AC input but most modern thermostats would have required that anyway. The CT-30 shown here is the one we got, but like I noted, it was $99 when we got it. I think you can still find them in that price range if you look around: http://www.radiothermostat.com/control.html

  • Jeff Mowbray
  • joejoe5709

    Niiiiice. First off, congrats to those involved with Nest. I’m sure you can now take a well deserved vacation in an exotic country.

    Second, this is very exciting for the Google faithful. I’m betting we’ll be seeing a Google Nest with a year and I’m sure it’ll be very affordable.

  • terry12s

    Awesome!!!

  • RoyD77

    I love the So-Carefully-Worded reply to the last Q&A question about customer data being shared with Google. No where in that very firm, stern, two sentence reply did they say “No”. I’d be fine with it, but just including it is hilarious corporate speak.

  • Mayoo

    I want a Nexus version so I can afford them!

    • joejoe5709

      Of course I have no idea, but I’d expect this to be marketed similar to Google Chromecast instead of the Nexus line. It’ll probably even work cross-platform.

      • BrianRoskamp

        The Q&A states it will remain cross-platform (Web, Android, Apple)

      • Justin W

        I feel you are correct.. It will likely be very affordable so it can ship to more homes.

  • hfoster52

    I love my Nest thermostats. Almost on year #2.

  • Vetal

    I am getting paranoid all of a sudden.

    • Kevin

      Why paranoid?

  • Boom

    Interesting, Considering that they were using Ecobee for their in home beta thermostats.

    • S.Ober

      exactly what I thought

      • hfoster52

        Maybe their product just didn’t cut it and they figured this is the way to go. Other companies are starting to catch up but nothing is the same as them.

        • Boom

          The ecobee thermostat is far more capable then the nest with far fewer issues. My guess is that nest will be easier to build out and rebrand. Who know maybe they will buy them both.

  • Jordan

    It’d be awesome if they started making things like smart switches/outlets that could control your lights and whatever else. For example having the app detect when I get home & it’s late, flip on so and so light by its self(could use the time & connection to wifi to figure this out). I realize their’s ways to do this already… but somebody needs to step up and be THE WAY to do it.

  • George Fayad

    How long until i can flash my Nest smoke alarm to alert me in Navi’s voice.

    “Hey! Listen! Your house is on fire!”

  • Bryan

    Apple is desperatly trying to purge these things from their stores.

    • hfoster52

      Former Apple engineers started this company.

      • BrianRoskamp

        Not just any former Apple engineers, Tony Fadell, one of the fathers of the iPod. And a University of Michigan alumnus!

        • John Legere

          The iPod they stole from Braun.

          • Adam Truelove

            If haven’t noticed, Apple steals their design from all over the place. They always have. They’re really good engineers, but their designs rarely start from within their company.

          • John Legere

            Oh, i know. Just felt like trashing them.

          • Intellectua1

            The Mouse..

        • enigmaco

          Should have known a rotten wolverine had something to do with it.

  • Jeff Mowbray

    Holy crap… That is wild. Happy for the folks at Nest. I hope it doesn’t affect them negatively and they continue to be as innovative.

  • Scott Wood

    Love my Nest thermostat.

  • Philip J. Fry

    Sweet. Can’t wait to see what’s to come of this.

  • Jeremy Alajajian

    Explains that screenshot we saw a few weeks back re: the home energy app I guess

  • AbbyZFresh

    3.2 Billion?

    This is like the 3rd company they acquired this past month. Where do these guys get this kind of money? They don’t have that 100+ billion apple income like that. So does that mean can i use my Moto X to change my Nest thermostat from anywhere i am?

    • jasdempsey

      Um, you can already use the Nest android app to control your Nest Learning Thermostat and Nest Protect?

    • Mike

      Google reported $14.9 Billion in Q3, and is sitting on (per the Q3 filing) $56.52 Billion. Also, Nest already has an android app.

    • Kevin

      You think that’s crazy? You should see Marissa Mayer is buying everything that she looks at.

    • Doan

      Yes, you can use your Moto X to control your Nest devices. As well as any Android or iOS device, laptop, PC, and a number of other devices.

  • S.Ober

    Why not Ecobee? Damit!

  • https://twitter.com/KryptosXLayer2 KryptosXLayer2

    Couldn’t like this any more than I do right now, great match up I didn’t see coming at all!

  • subiedude85

    Just in time for them to push a new product in the next 6 months when I buy a home, sweet.

  • John Legere
  • droidify

    Good. Maybe my thermostat won’t cost more than my tablet now.

    • Adrynalyne

      But the display will have ads :p

      • needa

        just buy the ad free version for 99 cents.

        • Adrynalyne

          Same with smoke detectors. Free version will detect smoke. Paid version will warn you about it.

          • Colton

            hahaha this is great

          • hfoster52

            Or it will voice a radio commercial out to you every so often and you have to pay to shut it up or wait 5 seconds to waive it off.

          • Chad Frankos

            Before alarm goes off it will tell you about some amazing sale based on your search search history linked to your gmail account.

      • Adam Truelove

        This would only be true if the Nest were free, in which case I wouldn’t mind ads. But I’m thinking they’re not going to be giving it away. But haha, I get it, Google uses ads to make money.

      • AmericanPlutocracy

        Very funny Stuff

    • Maxim∑

      it will require a Google+ account before turning on the heat

  • Zach B.

    $3.2 BILLION? o.O

    • Kevin

      Can you believe a stupid app that will become irrelevant turned down that kind of money?

      • Intellectua1

        Yea I never thought they were worth that much in the first place.. If I was Snapchat I would’ve too the money and ran.

    • Intellectua1

      That’s going to be one huge tax bill.. Time to find a charity to donate to..

      • AustinM123

        Google is good about evading taxes. However, almost everything they evade they give back to their customers.

  • flosserelli

    I would have never pegged alarms to be a $3.2 billion business.

    • https://twitter.com/KryptosXLayer2 KryptosXLayer2

      “Alarms” weren’t 3.2B, the thermostats were the majority of that purchase designed for them to incorporate it into Google’s upcoming systems, most likely

      • Matthew Rebmann

        Also a company by the name of “Nest” sounds a lot like company that has a whole lot of home products in mind, not just a smoke alarm and thermostat. Someone in the comments on this post mentioned something akin to “smart” light switches. An dark house knows your home at your front step and boom: Lights come on. Like he said, there are ways to go about this on your own but having a unified experience among all in home devices like what they have no would be awesome. Maybe as soon as you get home the lights come on and since it could be synced with the thermostat, it’ll also kick the temperature on to 70 degrees. Just some interesting thoughts

    • yankeesusa

      In the past years nest has made smart thermostats a very hot seller. Most customers that buy it have reported a savings in energy not to mention even those that do not know anything about programming thermostats or even installing them have purchased them and have used them with ease. I myself would love one but I have to spend my money on other things and I adjust my thermostat myself ok for now. I’m looking forward to a price drop. My friend who is a contractor and electrician bought one and he saves around 15% on his electric bill with his Nest 1st gen. Maybe the prices will go down this year.

  • Kyle Wilkins

    Cool. I am considering getting a nest thermostat for my new home. Anyone here at DL have one? What is your opinion on it?

    • https://twitter.com/KryptosXLayer2 KryptosXLayer2

      BEST. THING. EVER.

      • Kyle Wilkins

        Thank you. You take the cake for best review in 3 words or less.

      • Dan

        Seriously, it’s a thermostat.

        • https://twitter.com/KryptosXLayer2 KryptosXLayer2

          Yeah, you don’t own one, you wouldn’t understand…..

        • yankeesusa

          Yea, a thermostat. The same reason that double pane windows and insulation help save money the thermostat can be amazing too. You should try it.

          • Dan

            I should try it? I have a thermostat, it’s set for 50 degrees, when I want it warmer I throw a log in the wood stove. LED lights, love em, work great, use little electricity are they the best thing ever? No, I reserve such praise for useful things like duct tape and ziplocs, oh and really dark thick hoppy ale.

          • yankeesusa

            Ok

    • http://www.droid-life.com/ Tim-o-tato
      • Kyle Wilkins

        Hm. Must have missed that. Thank you for the link Tim-o-tato.

    • Jeff Mowbray

      Oh yeah, they are fantastic. You will love the interface on your phone /tablet

      • Kyle Wilkins

        Thanks for the reply Jeff. I appreciate it.

    • yankeesusa

      I have several friends who have it and they said that their electric bill went down within the first 3 months and has stayed down. They all had programmable ones but the learning part of the Nest helped them even more. That is the reason this thermostat is good. I can’t wait till I can afford it.

  • jwildman16

    My word!

  • sc0rch3d

    F U AAPL

    • Ned S Anders

      F Nest & Google. I don’t need Google snooping more into my home than they already are. Time to uninstall the Nest. I was looking for a full integrated home automation system anyway, so this gives me a good reason to start fresh.

      • michael arazan

        I hope Google never buys Reynold’s Foil or you’ll massively freak out when you can’t make your tin foil hats anymore.

        • ddpacino

          Hahahha! They just go ahead and do that just to troll the antiGooglers.

      • yankeesusa

        Then give it to me, I’ll pay for shipping. They have already said that they are keeping the companies and data separate for now. But if you don’t want your nest anymore I’ll take it off your hands he he

      • a3uge

        I guarantee this guy doesn’t own a Nest, and if he did, he wouldn’t throw it in the trash in fear of Google knowing what his temperature is.