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The Nest team will stay intact

Google bought Nest Labs earlier this month for a solid $3.2 billion in cash and according to a new report from TechCrunch, Google's new Nest team will be the search giant's core hardware group. That means Nest won't just be used for home automation and energy monitoring -- the team will be in charge of Google's latest hardware, which could include smartphones and tablets for Google's Android mobile operating system.
Google will keep the Nest team intact, including Nest CEO Tony Fadell. Fadell, who used to work for Apple on the iPod as well as the iPhone development teams, is considered a top dog when it comes to hardware -- but he's also comfortable with software. 
TechCrunch said Google was looking for the right product designers and engineers who could cross between both hardware and software, and saw that in Nest. 

[SOURCE: Digital Trends]

While Google will likely have its new hardware team work on home-automated devices as well, many reports say the Nest guys will take over all hardware projects spanning many kinds of devices. It's currently unclear what those devices will be.
It's interesting to see that Google sold off Motorola Mobility the same month that it acquired Nest. Many have concluded that Google originally acquired Motorola with the same intentions as when it acquired Nest; to have an innovative hardware team to power Android devices and beyond.
Google ended up selling Motorola to Lenovo for $2.91 billion earlier this week, reportedly taking a $7 billion net loss on the company. 
But Google got to hold onto Motorola's patents, which is likely what it acquired the company for anyway. Now, armed with patents and a whole new hardware team, we'll have to wait and see what Google does next. 
Google just posted its Q4 2013 financials, posting a significant rise in revenue from $14.42 billion USD in Q4 2012 to $16.86 billion USD in Q4 2013. Analysts expected $16.75 billion USD. But net income (GAAP) was at $4.10 billion USD ($12.01 USD/share), which is up roughly 15 percent year-over-year, but represents 1.5 percent less than the $4.16 billion USD ($12.20 USD/share) than Thomson Reuters predicted. 

Source: TechCrunch

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Good Idea
By DaveLessnau on 1/31/2014 12:12:52 PM , Rating: 2
Sounds like a good idea to me. Sell off a money losing concern and pick up a company that can redesign a common commodity-like product and sell it at a huge markup. What's not to like?

RE: Good Idea
By troysavary on 1/31/2014 12:16:08 PM , Rating: 2
Google didn't get Nest merely to get into the Smart Meter business. Nest had revenues of around $200 million per year, small potatoes to Google.

RE: Good Idea
By Souka on 1/31/2014 2:01:26 PM , Rating: 2
Nest revenues $200 million
purchased for $3.2 billion.

Wow.. a factor of 16? that is just plain CRAZY

Also, per GigaOm on Jan 2013, Nest had valuation of $800 million. So in one year it went up three times in
Revenue from two other sources is shown as $119-125million anually, not $200 million.

RE: Good Idea
By Jeffk464 on 1/31/2014 2:05:23 PM , Rating: 2
Home automation is coming, being the leading company in the field should be a huge profit model.

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