Google buying Nest, the original connected home startup, for $3.2 billion in cash

Daniel Bader

January 13, 2014 4:13pm

Google is spending $3.2 billion to buy former Apple engineer Tony Fadell’s Nest Labs.

The company behind the Nest Learning Thermostat and, more recently, the Nest Protect Smoke Detector, has been acclaimed in recent years as one of the first companies to introduce consumers to the idea of a connected home. The Nest Learning Thermostat is WiFi-connected and smartphone-enabled, and learns over time a home owners’ preferences to adjust the temperature — and power savings — to lower energy costs. It officially supports Android and iOS.

Google confirmed the purchase on its site today, with CEO Larry Page saying, “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!”

According to the press release, Nest will continue to operate independently for the time being, “with its own distinct brand identity,” and Tony Fadell will stay on as CEO.

Google was previously rumoured to be working on a connected thermostat of its own, but it appears that the company was merely attempting to work Nest into its existing infrastructure.

SourceGoogle

  • Terry Backlund

    I wanted one until now

    • Frank

      i wanted one, but now i actually want it even more…

    • Al Chui

      Just ordered two. Only needed one, but I had to offset Terry’s decision to no longer buy one.

    • TrainAss

      I have one, and a Nest Protect. They’re amazing devices. Need to get 2 more to finish replacing the POS smoke detectors in my home currently.

  • alphs22

    First email, then location, and now Google will even know the temperature in your home!

  • mrh192

    The biggest difference is that Google makes its revenue from advertising, not hardware. So expect to see a 5 second ad before the heating starts in your house now lol

    • Striker67

      Advertising which is based on its knowledge of its users which will now expand to how they hear their homes turn off their lights etc etc. All linked to a Google + account. Not a good thing.

  • MXH070

    Great….. Now it’s time to replace my nest with something else as Google will just make a mess of it like yahoo does with everything they touch. It was a great product till today…

    • Hilman in Edmonton

      So they won’t work now that Google owns them? I will gladly take them off of your hands for free if you want to get rid of them ;)

    • DrCarpy

      Clearly, the beer in the avatar pic wasn’t the only one you had prior to posting…

  • p_lindsay

    Does this mean that now you’ll have to watch a video before you can change the temperature of your house?

  • Josh Brown

    I really don’t get it. Why do people hate on Google so much. Please inform me.

    • Anaron

      Didn’t you know? It’s the cool thing now. Google suddenly made my Nest thermostat inoperable because of this. It’ll show me a 5- to 10-second ad projected to my ceiling via a hidden projector. And it’ll ask me to authenticate myself through Google+ before changing the temperature.

    • Striker67

      No one company should have so much info on your activities that even the government would be jealous. Hell even my local Android profile on my phone is tied to my Google + account and not just my Google account anymore. I didn’t ask for that and Google is forcing all of its users to give them your in order to allow you to use features of their products under the guise of them being free but they are not free and they word their terms of service in so much legalese that no one will try to read the fact that anything your store with them is yours but you have granted them a lifetime royalty free licence to use it in any manner they see fit. That is just the beginning. Like the old addage… If it sounds too good to be true it probably it. With Google it is free money wise but it is hardly free when it comes to your privacy your information your likes or dislikes etc

    • Josh Brown

      I love that they customize ads, Google now etc. What evil thing do you think Google will do with your info?

    • RussianDroid

      In this day and age there’s no such thing as free. It is troublesome that Google has enough metadata to map out what, who and when for most people on the planet, but I’m paying them with my info to use the said services. Is the price too great? Perhaps, time will tell. I concur that it is probably just the beginning.

      On the other hand no one is forcing anybody to use Google services, there are some paid alternatives out there. Same with android, there are other mobile OS’ out there.

      “Take what you want and pay for it” – Persian/ Spanish proverb

  • Symbiote

    This really sucks for Windows Phone users…. I was hoping Nest would make a WP8 app at some point. Google will never allow this now :(

    • Stephen B Morris

      You never know. Even corporations tend to grow up sometimes.

  • WatDah

    This is disturbing. While everyone is busy hating on Apple, Google has slowly, but surely, made numerous acquisitions, and silently take control of the companies that has the potential to take control of our lives. From your likes and dislikes, to your friends and families. From knowing the condition of your home, to developing military robots. Most people have no idea of the extend of Google’s influences.

    • RussianDroid

      GOOGLE – “We’ve Got the Future Under Control.”
      In the information age some one had to take the lead in taking/stealing/purchasing information. If it wasn’t Google it would have been some one else.

  • Stephen B Morris

    Heh, heh. Nexus thermostat by Nest. For the pure connected home experience.

  • wing

    Cool so now Google can find out what temperature your house is set at and what time your supper is done. Next they will buy a rectal thermometer company.

  • Adam

    I was considering buying four of them for my house (four zones, needing four thermostats), but was very leery how closed they are in terms of support. They’re very similar to Apple in that you must do everything the way Nest wants from support, to warranty to anything. Hopefully being owned by Google will open things up a bit and allow the product to move forward faster with better features and better customer support. I don’t need it to be open source like Android, but good integration with my Android devices and great customer support will make this a winner.