Nest just snapped up Dropcam, the home security webcam company.
Re/code reports Nest is absorbing Dropcam into its own brand, in a $555 million cash transaction.
It’s the latest move in what The Wall Street Journal suggests is Nest’s endgame — being the go-to controller for the connected home. “While initially hardware focused, Nest plans to become a central hub and software platform that controls many devices in the home as more are connected to the Internet.”
Nest itself recently was acquired — Google finalized its purchase of the company and its smart home devices in February, for $3.2 billion. (Via CNBC)
“Data won’t be shared with anyone (including Google) without a customer’s permission. Nest has a paid-for business model and ads are not part of our strategy. In acquiring Dropcam, we’ll apply that same policy to Dropcam too.”
“Google was adamant when it acquired Nest that it wanted the company to operate autonomously,” wrote CNET. “Dropcam is the first major expression of freedom from [Nest execs] Fadell and Rogers.”
But all the good intentions in the world aren’t stopping the Internet from noticing Google now, at least indirectly, controls a business for Internet-connected surveillance cameras. (Via @dangillmor, @mmasnick)
Google, for its part, appears content to let Nest do its thing, and hasn’t made official comment on the deal yet. The Dropcam acquisition is expected to close as soon as it gets regulatory approval.