Google Acquiring Tony Fadell-Founded Nest for $3.2 Billion

[639051]

Apple could have bought them and then engineered ways to milk every cent out of you with things like tamper resistant screws!

While everyone here moans and complains about data security, they ignore the simple fact that Apple is every bit as anti consumer with moves like the tamper resistant screws they are patenting. It is going to cost you one way or another .. personally I prefer to be able to work on the devices I buy rather than have to rely on Apple to fix even minor issues. Sure while it's under warranty they do it .. but that warranty doesn't last long.

It's called trade offs. Parting with cash is a lot less easy than coming to the understanding that Google makes money off your data. Just like lots of other companies do these days.

 

[osofast240sx]

Apparently, from what I've read, Apple not only didn't want to pay $3.2 billion, but they didn't bid at all.

As for Nests IP, no it's not unique, but they have a rather large foot in the door of home automation. In addition, we don't know what future products they have in the pipeline. Google's purchase makes them an automatic major player in the home automation market.

Completely untrue, this is just Pure speculation. Home automation has been around for a while now Google has a long long road ahead of them. And if you think it's that easy just ask LG and Samsung two companies that have pretty much every appliance and every product to tie this type of ecosystem together.

 

[AppleScruff1]

To be fair to apple we are customer, and to google we are the product.. I think a lot of complaints and concerns arise because of this distinction.

Of course they wouldn't. Apple is not an advertising company. People aren't annoyed that much by the data google collects. They are annoyed more by how that data is used.

But we really don't know how or what Apple does or will do with all of the data they have, do we? For example, I wonder if they have a database of every Siri question or search? And where it came from? And of course if they say they don't we know that we can trust them because they only care about the consumer.

 

[IJ Reilly]

I highly doubt that Google has no plan for Nest. As I said in a previous post, I think Google will likely look to tie the Nest product line into Google Now pretty quickly. Of course, in order to get the Google Now benefits, one would have to voluntarily opt in and connect their Nest with their Google account.

Imagine. . .

"Ok, Google, set the temperature in my house to 70 degrees when the temperature outside goes below freezing" from your iOS or Android device halfway around the world or when you're working late at the office. Or, "Ok, Google, turn the heat up to 73" when you're in bed and don't want to get up to turn the thermostat up.

The average person is going to love to do that -- especially if they bring the price down to ~$99 for the thermostat. In return, Google is going to suck up a ton more data on home climate control and do God knows what with it. I have no idea what they want to do with that kind of data; but I assure you that they do have a plan.

No doubt Google has plans for Nest technology that go beyond their current product line, but if this is the best they can do, it's a loser -- not because it's unappealing, but because it's technologically trivial.

 

[Rogifan]

If they purchased Nest, which Apple didn't even put a bid for, it would have been a fairly large step into the home automation business. This purchase by Google thrusts them right into the middle of the biz. Plus, Apple hasn't made any purchases that indicate they are interested. They apparently want to hang their hat on an iPhone you place on your wrist and a TV set.

So now since Google purchased Nest, home automation is where it's at and wearables isn't? Could have fooled me with all the stuff showcased at CES. Typically Apple buys technology and then builds their own solution/product (e.g. Touch ID). Nest is a fully baked hardware product. How would that fit into Apple's business model?

 

[samcraig]

But we really don't know how or what Apple does or will do with all of the data they have, do we? For example, I wonder if they have a database of every Siri question or search? And where it came from? And of course if they say they don't we know that we can trust them because they only care about the consumer.

Just for the record - given that Apple is still determined to make a go of iAds - all of Apple's "customers" are also their "product"

 

[BaldiMac]

And completely unfounded. And given how much one looks at a thermostat - delivering ads on the devices seems rather silly. You look at your phone multiple times a day. How many impressions do you think a thermostat is going to get.

How are concerns about the future "completely unfounded". Do you have a crystal ball?

 

[AppleScruff1]

Just for the record - given that Apple is still determined to make a go of iAds - all of Apple's "customers" are also their "product"

Evidently there is a double standard.

 

[samcraig]

How are concerns about the future "completely unfounded". Do you have a crystal ball?

If you've read this thread - all of it - I find it hard to believe you'd argue the fact that several are being Chicken Littles.

Some of the posts aren't concerns about the future. They are responding as if right now their devices are worthless (to them because of their "hatred" for Google).

Others are making baseless claims. Not concerns. Baseless claims about requiring Google + integration.

And so on.

No - I don't have a crystal ball. You don't need one to have an opinion on how silly some people are.

 

[BaldiMac]

Evidently there is a double standard.

Sure there is. Because a company that get 97% of its revenue from advertising has different motivations than a company whose advertising revenue is a rounding error.

 

[See Flat]

Why pay 3.2 billion for a 2 billion$ company. They don't seem to like to bargain much at google investments.

 

[IJ Reilly]

Quote:
Fadell would not comment on reports earlier this year that Nest had been selling approximately 40,000 of its Learning thermostats per month, but did reveal that the thermostat was now in “almost 1% of U.S. homes.”

“It’s not just early adopters,” he said of these first customers, “but a lot of different homes and demographics.”

Given that there were 113.9 million occupied homes in the U.S. in 2012, according to the U.S. Census Bureau, that would suggest that in the two years since it launched, the Nest Thermostat has found its way into close to 1.1 million homes. At a retail price of roughly $250 each, that could mean revenues of roughly $275 million so far from the Learning Thermostat alone."

Yeah, so they are only paying about 15 times revenue. Now that is still a ton of money. Especially since that is a multiple of revenue and probably means Google is paying 100 times the actual profit earned. But Google can afford to spend that kind of cash. They need to find new revenue sources to justify their stock price. As long as they are taking some action, the market will give them the benefit of the doubt, I think.

Being able to afford it, and it being a wise investment, are two very different things. I can afford to buy a huge number of Lotto tickets. Good idea?

If the return on investment isn't there, then neither will profits. It surely won't help Google justify the price of their stock. Investors certainly are not impressed by random, expensive acquisitions.

 

[samcraig]

Sure there is. Because a company that get 97% of its revenue from advertising has different motivations than a company whose advertising revenue is a rounding error.

Both companies care about their bottom line. And making money off of the consumer. Different business models. Not motivations.

And just because Apple hasn't been successful doesn't mean they aren't trying to be. You don't think Apple would LOVE to have Google ad revenue with iAds? Sincerely? Motivation is the same. Right now their models are different.

Not to mention all the data Apple collects anyway. And just like Google - has a very similar privacy policy.

 

[AppleScruff1]

Sure there is. Because a company that get 97% of its revenue from advertising has different motivations than a company whose advertising revenue is a rounding error.

The double standard is because it's Apple. The same conspiracy theory would hold true if it was Microsoft or Samsung. Google, Microsoft and Samsung seem to be the big three that strike fear on Apple forums for some odd reason.

 

[KazKam]

oh no.

You don't find the amount of data about you Google is amassing just a little disconcerting? Personally, it creeps me out.

The super accurate ad targeting is creepy enough, but that's one of the least nefarious uses of all of that information about you. Now think of what all that data COULD be used for if it was compromised (and it will be) or used outside the terms you agreed to (and it is). Scary.

Normally this is where I'd remove my aluminum foil hat, but I'm going to leave it on today. You know, just in case.

 

[kdarling]

They could EASILY target ads on existing avenues they already use, based on your Nest data.

You mean, that if I kept my house extra cool during the winter, that a Google search response might include an ad for electric blankets, instead a random one for, say, baby food?

The horror.

You don't find the amount of data about you Google is amassing just a little disconcerting? Personally, it creeps me out.

And Apple doing the same doesn't creep you out?

 

[samcraig]

You don't find the amount of data about you Google is amassing just a little disconcerting? Personally, it creeps me out.

The super accurate ad targeting is creepy enough, but that's one of the least nefarious uses of all of that information about you. Now think of what all that data COULD be used for if it was compromised (and it will be) or used outside the terms you agreed to (and it is). Scary.

Normally this is where I'd remove my aluminum foil hat, but I'm going to leave it on today. You know, just in case.

I prefer (if I am going to get ads) that they are targeted vs spammy ones.

I am a firm protector of privacy - and believe that once you move the line it's very hard or impossible to move back. But that being said - I just find the concern over NEST being acquired to be a bit hyperbole.

Whoever owns NEST has access to when you turn things on/off and are away or home, etc.

 

[AppleScruff1]

You mean, that if I kept my house extra cool during the winter, that a Google search response might include an ad for electric blankets, instead a random one for, say, baby food?

The horror.

Exactly! Your life would be turned upside down.

 

[malexandria]

Silly

don't understand the point of this nor, how it could be worth so much money to a company like Google.

 

[BaldiMac]

If you've read this thread - all of it - I find it hard to believe you'd argue the fact that several are being Chicken Littles.

Some of the posts aren't concerns about the future. They are responding as if right now their devices are worthless (to them because of their "hatred" for Google).

Others are making baseless claims. Not concerns. Baseless claims about requiring Google + integration.

And so on.

No - I don't have a crystal ball. You don't need one to have an opinion on how silly some people are.

I'm sure some people are just posting a knee-jerk reaction based on emotion and fanboyism. But let's not dismiss the real concerns in favor of a few nut jobs.

Why is it "baseless" to worry that Google will one day add Google+ integration? Why is it wrong to draw a line in the sand when it comes to the amount and type of data that you want a single company to hold? Regardless of their intentions.

 

[IJ Reilly]

Apple should indeed do something more "bold" than focusing on paying dividends to their shareholders. Not sure what it would be, but a company so successful as Apple should also aim for something greater than milking money on slow incremental hardware upgrades. It starts to feel like something is missing.

Something does seem to be missing, but it's got nothing to do with dividends. Apple clears a billion dollars a week in profits. They can do whatever they like. I hope and expect that they won't be asleep at the switch in the home automation area, because it is going to be big. They could blow everyone away with their own tech, but they'd better move more quickly or risk being outflanked.

 

[samcraig]

I'm sure some people are just posting a knee-jerk reaction based on emotion and fanboyism. But let's not dismiss the real concerns in favor of a few nut jobs.

Why is it "baseless" to worry that Google will one day add Google+ integration? Why is it wrong to draw a line in the sand when it comes to the amount and type of data that you want a single company to hold? Regardless of their intentions.

Split hairs over my post. You're good at that

You know the full intention of my original post. And you've admitted above that some are the exact types I was commenting on.

I never dismissed every post. I dismissed the ones that are clearly hyperbole. But you know that.

 

[iBug2]

But we really don't know how or what Apple does or will do with all of the data they have, do we? For example, I wonder if they have a database of every Siri question or search? And where it came from? And of course if they say they don't we know that we can trust them because they only care about the consumer.

No we don't. I don't trust Apple more than I trust Google or Microsoft when it comes to data collection. But Google has a lot more at stake if they can't collect our data than Apple or Microsoft does.

 

[mingoglia]

Most thing I own every gadget known to man. I've replaced my 3 thermostats relatively recently, and as hard as I tried to convince myself that I "needed" a Nest, I just couldn't pass up a good 'ol "cheap" digital Honeywell. I just don't see the benefit. Perhaps one day I'll buy one and kick myself for not realizing how "awesome" they are?

 

[iBug2]

The double standard is because it's Apple. The same conspiracy theory would hold true if it was Microsoft or Samsung. Google, Microsoft and Samsung seem to be the big three that strike fear on Apple forums for some odd reason.

From where I'm standing, it seems like Samsung and Google fear Apple since every time there's a debate about those three, the same people flood the forums and start attacking Apple. It's like clockwork, really fun to watch. Microsoft has been absent from these discussions lately.