Google’s $3.2B Nest Labs acquisition, and what it means for real estate

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Last week, Google announced it had an agreement to acquire Nest Labs, the startup that created the smart connected digital thermostat and smoke detector, for $3.2 billion. Initially, I was surprised by the announcement. Nest was reportedly close to completing a lucrative round of funding, and the company seemed poised to take its products to the next level. I was also surprised to learn that Apple wasn’t even in the mix. Tony Fadell, the founder and CEO of Nest, has deep ties with Apple. Fadell and his team brought the iPod to market and helped integrate the iTunes platform back in 2001. He left Apple in 2008 and launched Nest two years later with former Apple executive Matt Rogers. Nest products are also advertised and sold across Apple stores. However, the more I thought about it, the more sense the deal made. Google acquired a talented team of engineers who have developed a successful product. Of equal importance, the search engine giant has expanded its ability to integr...