GOOG Stock – Google Buys Nest Labs in ‘Internet of Things’ Play

by Christopher Freeburn | January 14, 2014 10:23 am

GOOG Stock – Google Buys Nest Labs in ‘Internet of Things’ Play

nest GOOG Stock   Google Buys Nest Labs in Internet of Things Play[1]Google (GOOG[2]) is moving into the home appliance business. The Internet search giant-turned technology developer announced on Monday that it will acquire Nest Labs, best known for creating a line of smart thermostats[3].

Nest Labs is headed by former Apple (AAPL[4]) executive Tony Fadell, who was behind the creation of the iPod. Google will pay $3.2 billion to buy Nest, its largest purchase since spending $12.5 billion to buy Motorola in 2012. The acquisition gives Google a beach head in home appliances, which are increasingly gaining WiFi connectivity — a move toward the so-called “Internet of Everything,” in which all devices are ultimately networked and subject to remote control, Reuters notes.

Roughly a third of Nest’s team of 300 are former Apple employees. The Nest smart thermostat has been sold through Apple’s online store, as well as retailers like Best Buy (BBY[5]).  Fadell told Reuters that privacy issues had been a major talking point during his negotiations with Google about the merger. Nest will remain an independent brand after the acquisition.

GOOG stock climbed almost 1% in Tuesday morning trading. GOOG stock rose above $1,000 a share in October. GOOG stock has continued to climb since then. GOOG stock rose above $1,100 a share in December. GOOG stock is currently trading at more than $1,135 a share.

More Companies Betting on the “Internet of Everything:

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2014/01/nest.png
  2. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  3. best known for creating a line of smart thermostats: http://www.reuters.com/article/2014/01/14/us-google-nest-idUSBREA0C1HP20140114
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  6. Morgan Stanley Gushes on the Internet of Things: http://investorplace.com/2013/09/csco-morgan-stanley-internet-of-things/#.UtVVJ3m1Kf0
  7. Cisco ‘Internet of Things’ Has Mind-Blowing Potential: http://investorplace.com/2013/08/cisco-internet-of-things/#.UtVVKHm1Kf0
  8. This Startup Is Looking to Cash In on Cisco’s ‘Internet of Things’: http://investorplace.com/2013/08/how-this-startup-is-looking-to-cash-in-on-ciscos-internet-of-things/#.UtVVKnm1Kf0

Source URL: http://investorplace.com/2014/01/goog-stock-google-buys-nest-labs-internet-things-play/
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