Google’s Nest Adds New Smart Home Piece With Dropcam
Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has added another piece to its smart home puzzle with Nest’s acquisition of Dropcam for $555 million. Re/code reports that smart thermostat and smoke detector maker Nest signed an agreement on Friday to acquire Dropcam, a startup that produces the top selling home monitoring camera on Amazon (NASDAQ:AMZN). Four months ago, Nest was acquired by Google for $3.2 billion, but Nest says it is undertaking the acquisition of Dropcam on its own without help from parent company Google — which it likely specifies in order to assuage privacy concerns of users wary of their video feeds going to Google.
Dropcam has not disclosed sales, but in addition to Amazon, the company now sells a $199 camera and a $149 model at Apple (NASDAQ:AAPL) and Best Buy (NYSE:BBY). The company also sells cloud storage, and customers pay $99 per year to store a week’s worth of video at a time, or $299 to save a month’s worth of video. Dropcam’s website cites the ability to save and share clips from that footage, and the company has an activity recognition service, currently in beta, that will “learn typical motion patterns in your video stream” to customize alerts that are sent via an Android or iOS app. Last year, Dropcam told AllThingsD that 39 percent of Dropcam users pay for services beyond the cost of the camera.