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Google Purchases Nest for $3.2 Billion
It was announced on Tuesday that Google has purchased Nest for $3.2 billion in cash, according to a report from USA Today. Nest makes digital smoke alarms and thermostats. The company is headquartered in Palo Alto, California.
This purchase sends Google into multiple markets. Those markets include PCs, e-mail, search, smartphones, tablets and the home. This acquisition allows Google to dabble in the concept of the home being connected digitally to other electronic devices.
Frank Gillett, an analyst with Forrester, said that the purchase “affirms the growing strategic importance of the idea of the connected home. It also shows Google increasingly believes in hardware-software solutions such as Nest has built, rather than building operating systems.”
Nest started in 2010 and its CEO, Tony Fadell, will continue to run the company. Fadell worked at Apple before beginning Nest. He helped develop the iPod and iPhone prior to leaving.
“This was methodically planned — this was not a slapdash kind of thing over a weekend,” Fadell told USA TODAY. “This has been going on since the summer, when we started to think about raising money and when we also wanted to partner with certain teams at Google for technology, for infrastructure for various things. I work on visions and creating products and businesses that I believe in and other people take notice. And, in this case, Google did.”
Larry Page, the CEO of Google, said that Fadell and his Nest co-founder, Matt Rogers, created a “tremendous team that we are excited to welcome into the Google family.”Google Purchases Nest for $3.2 Billion by Jim Vassallo