Alphabet is Considering Folding Nest into Google’s Hardware Division

Alphabet is Considering Folding Nest into Google’s Hardware Division

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

About author

Doug Lynch
Doug Lynch

When I am passionate about something, I go all in and thrive on having my finger on the pulse of what is happening in that industry. This has transitioned over the years from PCs and video games, but for close to a decade now all of my attention has gone toward smartphones and Android.