Alphabet is Considering Folding Nest into Google’s Hardware Division

Alphabet is Considering Folding Nest into Google’s Hardware Division

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When Google acquired Nest back in 2014, the Tony Fadell-founded company petitioned for autonomy. It was considered something of a steal for $3.2 billion, but infighting and cultural clashes hampered its productivity. That didn’t stop Nest from getting new high-end security cameras and smart thermostats out the door, but Alphabet, Google’s parent company, is reportedly looking to streamline things.

A new report from The Wall Street Journal citing “people familiar” with the matter claims that Alphabet might fold Nest into Google’s hardware division. It wouldn’t be a difficult transition; Nest’s more than 1,000 employees have historically complemented Google’s product efforts, and its retail and supply chain relationships overlap with Alphabet’s own. A former Nest manager who spoke with The Wall Street Journal expressed surprise that the merger hadn’t happened sooner.

After a couple of years under the arm of Alphabet, Nest’s co-founder and CEO, Tony Fadell, stepped down in 2015. Mr. Fadell was replaced by Marwan Fawaz, a former executive vice president at Motorola Mobility, and the company’s been cranking away new products ever since. Just recently, Nest announced a new in-home alarm system that connects to and works with all of its existing products.


Source: The Wall Street Journal