“Google has just purchased Nest Labs, the maker of the Nest Learning Thermostat and Protect smoke detector, for $3.2 billion in cash. According to a Google press release, Nest will continue to operate independently, co-founder and CEO Tony Fadell tells us; co-founder Matt Rogers will also make the move to Google. While the transaction is subject to the usual regulatory review, Google says it expects the sale to close within the next few months. Google Ventures had already invested tens of millions of dollars in Nest, so the company has been on Mountain View’s radar for some time now.”
So why did Google pay so much for Nest? It was a lot more than the company seemed to be worth. Its last valuation two weeks ago priced the company at £1.22 billion, which doubled since last year’s valuation by GigaOm of £488 million.
While this move does pave the way for Google to enter into our homes, we however think there’s more to this, perhaps their main aim was to get access to the design skills and brains who helped create the first iPod.
With both this acquisition and their earlier purchase of Boston Dynamics, we are very interested to see what Google has planned for the future.
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