Jun 21 AT 8:50 AM Nick Sarafolean 4 Comments

Google uses Nest to purchase Dropcam for $555 million

Dropcam

The money is flowing in the tech world. Following Google’s acquisition of Nest earlier this year, Nest (Google in disguise) has announced its purchase of Dropcam for $555 million. If you’re not familiar with Dropcam, it’s a cloud-based WiFi video streaming service. That sounds like an entertainment service, but it’s actually used for security, allowing homeowners to easily monitor and track what goes on in their homes via Dropcam cameras.

What intrigues us is that this is Google’s second large purchase of a company that makes goods to improve the home. Rumors have been swirling that Google is planning a push toward smart homes, and if its latest purchases are any indicator, then that rumor would appear true. While a home connected by Google Now would have hundreds of benefits, it would also raise security risks tenfold. We sincerely hope that Google takes their time to make sure that everything is ironed out before trying a smart home concept.

Mum is the word for Nest on what Dropcam will be used for, but the founder of Nest did say this:

Once the deal closes, we'll incorporate Dropcam into how we do business at Nest. That includes how we handle everything from customer support to customer privacy. Like Nest customer data, Dropcam will come under Nest's privacy policy, which explains that data won't be shared with anyone (including Google) without a customer's permission. Nest has a paid-for business model and ads are not part of our strategy. In acquiring Dropcam, we'll apply that same policy to Dropcam too.Matt RogersNest

What are your predictions for how Google will use Nest and Dropcam?

Show Press Release
Palo Alto, California – June 20, 2014 – Nest Labs, Inc. (nest.com) announced today that it has entered into an agreement to buy Dropcam for $555 million in cash, subject to adjustments.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US. For more information, visit the Nest blog.

About Nest
Nest reinvents unloved but important home products, like the thermostat and smoke and CO alarm. The company focuses on delighting customers with simple, beautiful and thoughtful hardware, software and services. The Nest Learning Thermostatâ„¢ and Nest Energy Services offerings address home energy consumption, and Nest Protect: Smoke + Carbon Monoxideâ„¢ helps keep people safe. Nest products are sold in the U.S., U.K. and Canada, and are installed in more than 120 countries. For more information, visit www.nest.com.

Via: Android Central

Source: Nest

A nerd at heart, Nick is an average person who has a passion for all things electronic. When not spending his time writing about the latest gadgets, Nick enjoys reading, dabbling in photography, and experimenting with anything and everything coffee. Should you wish to know more about him, you can follow him on Twitter @Zricon15.

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