What Will Google Know About You After $3.2 Billion Nest Deal?

Jan 14, 2014 02:21 PM EST | Jordan Ecarma


Google, the tech giant that is slowly gaining ground in every area of consumers' lives, has acquired Nest Labs Inc. in an all-cash $3.2 billion deal.

The maker of smart thermostats and smoke detectors, which will stay as its own distinct brand after the deal closes, benefits Google with a strong line of products and a killer design team, Reuters reported.

Tony Fadell, known as a co-creator of the iPod, is Nest's CEO and hopes that the boost of support from Google will take the company to the next level.

"When we first showed up two years ago, people were like, 'thermostats, poo-poo,' and they didn't even talk about connected homes or the Internet of things," Fadell told CNET.

"We changed the landscape, and made them top of mind. When it comes to the Internet of things, we can take a large piece of credit for kick-starting that. What we're doing [with the Google deal] is we're changing the landscape yet again... [Google] is a major corporation saying, 'We believe in these products,' and we want to help them succeed even further."

Analysts are saying that Google's acquisition could jumpstart growth of the "Internet of things," a tech trend where connectivity has been implemented into such objects as kitchen appliances, lighting and even beds.

One concern about Google and Nest's deal is how it will affect user privacy. Google already knows what people are searching for, what they say in emails, what they're watching and where they live. Through nest, the tech behemoth can add data that tells when consumers are home and how much energy they're using in the house.

Fadell told Reuters that user privacy was an important topic before the company closed the billion-dollar deal.

"The reality of the situation is inside of Google they take privacy so incredibly seriously you have no idea," Fadell said.

The CEO said that Nest's terms of service will remain the same after the deal closes and any data will only be used to improve user experience.

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