Google Announces its Plans of Acquiring Nest Labs for $3.2 BillionAssociation of Strategic Marketing
January 17, 2014 — 1,709 views
Looks like Google is on a spree of acquiring every company that comes in its sight. The latest one to catch the fancy of Google is Nest Labs. In a recent announcement, Google revealed that it plans on acquiring the company for a whopping $3.2 billion. Nest Labs is a company that makes thermostats. The surprising part is not that Google is planning on acquiring Nest, but that it is ready to shell out over $3 billion for this deal. The market is abuzz with the news that Nest barely has the level of defensible technology for the sum of money it is being paid.
Is the Deal Worth it?
However, Google cannot be that careless with its dealings. So what is it that made it settle down for this deal? Perhaps a look in detail in the kind of thermostats Nest Labs manufactures will help in understanding this. Nest Labs does not make ordinary thermostats. Its thermostats are smart, the ones that can be connected with the internet and not the ones that you spend hours on just trying to figure out the settings. This means that Nest's thermostats are the kind that understands when you leave the house, the moment you get into your room, and so on.