Google Acquiring Tony Fadell-Founded Nest for $3.2 Billion

[BaldiMac]

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.

I was referring to their motivations toward collecting and maintaining data. Not their motivation to make money.

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.

I think that's a weak attempt to use conspiracy and fanboy claims to avoid a real discussion. Personally, I would not be nearly as concerned about Nest if it was acquired by Microsoft. (I don't see Samsung as even a remote possibility for the acquisition. )

Google collects a whole lot more information about you than Apple. That has nothing to do with any "double standard because it's Apple."

 

[samcraig]

I was referring to their motivations toward collecting and maintaining data. Not their motivation to make money.

Just means to an end, no? That data is a means to profit.

Methods might be different. Success rate might be different. At the end of the day - both (and all companies) seek profit and removing money from one person or company and putting it in their bank account.

 

[CausticPuppy]

That report was not true even two years ago

I cannot find any news source that shows Android ad revenue exceeding iOS ad revenue for any company. All I can find are news articles showing iOS with a larger ad revenue share than Android.

Do you have any sources that I must be missing?

 

[IJ Reilly]

Where is everyone getting this $100 billion in cash statement? As of the latest quarterly report AAPL had $105B in retained earnings, not cash. Retained earnings is basically the accumulated profits that haven't been returned to shareholders.

These retained earnings have already been invested in many different projects and AAPL "only" has 11B in cash and 31B in short term investments.

Very, very deceptive. You have conveniently ignored the $106B in "long term investments" carried on the balance sheet, which represents marketable securities. It might be technically wrong to refer to it as "cash" -- but just because the money isn't in bundles of bills sitting in a vault doesn't mean that the funds are illiquid.

 

[copykris]

this thread is a hoot

so many angry peoples

 

[osofast240sx]

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.

I think the bigger picture is The end game is the same for all these companies. They are just starting from different ends of the board.

 

[Oletros]

I cannot find any news source that shows Android ad revenue exceeding iOS ad revenue for any company. All I can find are news articles showing iOS with a larger ad revenue share than Android.

Do you have any sources that I must be missing?

I don't know and it is irrelevant, what I have said is that the report that Android had $500 million revenue from its release is false, nothing more, nothing less.

 

[Arran]

Ads on the thermostat, no. But remember, your Nest devices and their data are tied to your Nest account. Your Nest account has an email address. Your email address can be cross referenced with Google's massive DB of email addresses of yours they have on file. Ergo, all of the data collected by Nest products can EASILY be associated with all of the other information Google has about you, including your browser histories and what devices you use and when. They could EASILY target ads on existing avenues they already use, based on your Nest data.

They also know your home's zip code, square footage and when it was built - so they can deduce what your house is worth and what sort of monthly heating/cooling costs you can afford. They also know about second homes since the app puts all houses/locations under a single account. And, of course, they know you're the sort of person who spends $1000 on replacement thermostats and smoke detectors when much cheaper alternatives are available. All demographic gold.

 

[iBug2]

Just means to an end, no? That data is a means to profit.

The means to an end doesn't argument is irrelevant since it's human privacy we are talking about here. The means matter.

If Apple or Google started killing animals, or hell with it, people, to make money, would we say "it's just means to make money, who cares?"

This is about whether data collection for advertising or whatever other reason is "ok" with us or not.

 

[AppleScruff1]

I think that's a weak attempt to use conspiracy and fanboy claims to avoid a real discussion. Personally, I would not be nearly as concerned about Nest if it was acquired by Microsoft. (I don't see Samsung as even a remote possibility for the acquisition. )

Google collects a whole lot more information about you than Apple. That has nothing to do with any "double standard because it's Apple."

I expected this kind of response. No point in continuing it any further. I see the weak attempt in the opposite direction. Enjoy the day, it's raining here in MA, but that's better than snow!

 

[69650]

Shame, they would fit nicely into the Apple product portfolio. They are being far too conservative with all that cash stashed away. This was a real opportunity to expand into the home automation market thereby expanding the walled garden into new areas.

 

[samcraig]

The means to an end doesn't argument is irrelevant since it's human privacy we are talking about here. The means matter.

If Apple or Google started killing animals, or hell with it, people, to make money, would we say "it's just means to make money, who cares?"

This is about whether data collection for advertising or whatever other reason is "ok" with us or not.

Straw man. Not going to engage with you further.

 

[linux2mac]

Well, that's ends MY interest in ever buying any of these. If Google's involved, I'm gone. They're trying their best to own us all. Well, not me!

+100! I could not have said it better myself. I was seriously thinking of getting a Nest after a friend gave me a demo of their Nest just last Sunday. Forget it now. Like you said, "if Google's involved, I'm gone." So if Google's next purchase is Philips, then you will find my Hue and Friends of Hue lights on eBay.

 

[bankshot]

Wow, far more comments than I would have expected on this fairly minor story…

Hopefully this is a good thing. I own a Nest thermostat, and except for the wifi feature (which is the main reason I bought it, and is great), it's been incredibly frustrating. In very Apple-like fashion, the thing is just too darn inflexible. You will use it the way Nest intended, and if you wish to deviate from that "perfect" plan, too bad. Nest is smarter than you, so just sit back and bask in their infinite wisdom. Waaay too much like another company commonly discussed on this site.

My number one complaint: the schedule will always override any manual temperature adjustments, and there's no way to have it "hold" a manual setting for any period of time (a feature found in any cheap "dumb" thermostat). So let's say it's 6:57 and I adjust the temperature to 72. At 7:00 there is a temperature set point of 68, so 3 minutes after I make my setting, it is overridden by the schedule. The thermostat and app don't warn me of this. If I notice that my change has been reverted, I have to go back and make the adjustment again. I don't really know ahead of time when the schedule set points are (and therefore when to expect this stupid behavior), since the thing "learns" and makes up the schedule on its own.

Hopefully Google will at least fix this major shortcoming. They are known for dumping a pile of features into a product without much regard for user interface, so maybe they can meet Nest in the middle. Add a few features like this to make the darn thing usable, without killing the otherwise nice interface.

 

[KazKam]

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.

That was just my response to samcraig's comment about why targeted ads on the thermostat itself wasn't at issue. You may note that in the rest of the post of mine you quoted below I state that targeted advertising is the LEAST nefarious use of this data, and that's not what concerns me. It's all of the other uses for this kind of data combined with all the other data they (all tech and info-gathering companies, and yes, Google in particular, because I believe them to be unscrupulous) are amassing.

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

I believe AppleScruff1 and BaldiMac are covering this topic well enough.

 

[Gudi]

Google isn't known for making many stupid investments and losing bunches of money.

May I remind you of a money sink called Motorola. Does anyone know why Google bought Motorola?

 

[yellowtruck]

Evil Google

What? Evil Google will now own and operate Nest??? Thats the whole reason why Google wants Nest, for day to day life data captured by Nest - with back door government access and hacking safari like tactics. Went be getting’ one of those when I buy my 1st house!

 

[iBug2]

No, it was not correct but I won't waste more time with you, bye.

Yes actually it was correct, as me and another poster provided you with all the links needed to check that it was correct.

 

[IJ Reilly]

May I remind you of a money sink called Motorola. Does anyone know why Google bought Motorola?

It was right there at the checkout counter, next to the Chapstick.

 

[Poisonivy326]

Google's just making an acquisition for the talented Nest team of engineers and designers. They have a reputation for obtaining, and keeping some of the best engineers in the field. What they'll do with the Nest engineers is anybody's guess -- I'd think they'd disperse them around the company in their various projects so they can inject some talent into some projects that might be stagnating. They're a rich company so they can afford to do this and seriously, why not?

 

[iBug2]

Google's just making an acquisition for the talented Nest team of engineers and designers. They have a reputation for obtaining, and keeping some of the best engineers in the field. What they'll do with the Nest engineers is anybody's guess -- I'd think they'd disperse them around the company in their various projects so they can inject some talent into some projects that might be stagnating. They're a rich company so they can afford to do this and seriously, why not?

My question is why didn't they do that sooner? Nest has been around for a while, why wait until the company is worth a lot? They probably could have gotten Fadell for a lot less than 3.2 billion, or who knows, maybe he didn't want in back then.

 

[SirLance99]

For all those that are so upset by Google buying Nest and already have one. I'll gladly take them off your hands and use them.

 

[Renzatic]

My question is why didn't they do that sooner? Nest has been around for a while, why wait until the company is worth a lot? They probably could have gotten Fadell for a lot less than 3.2 billion, or who knows, maybe he didn't want in back then.

He might've had a hell of a pitch. There could be some unannounced thing he's working on that impressed Google to the point that spending 3 billion dollars seemed like a good idea.

 

[Poisonivy326]

My question is why didn't they do that sooner? Nest has been around for a while, why wait until the company is worth a lot? They probably could have gotten Fadell for a lot less than 3.2 billion, or who knows, maybe he didn't want in back then.

He probably didn't want it back then, and also, was probably "worth less" back then. Good for Fadell for holding out and hard bargaining.

The real test is whether Google now uses the talented Nest team wisely. If you read Glassdoor there's already a lot of complaints that Google hires too many people and that a segment of the company isn't really all that productive.

 

[dBeats]

I tested the waters with a Nest Protect. I was very happy with the setup and ease of use. I was literally days away from getting a Nest thermostat when I heard about this. I just can't see how Google WON'T figure out a way to make these things spy on you. Call me a fan boy, but the main reason I like Apple is because they are a company making products that you buy and that's their main source of revenue. Google is a company that gives things away and YOU are the product. Not a fan of this model at all....