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

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

nest[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:

  1. [Image]:
  2. GOOG:
  3. best known for creating a line of smart thermostats:
  4. AAPL:
  5. BBY:
  6. Morgan Stanley Gushes on the Internet of Things:
  7. Cisco ‘Internet of Things’ Has Mind-Blowing Potential:
  8. This Startup Is Looking to Cash In on Cisco’s ‘Internet of Things’:

Source URL:
Short URL: