This acquisition will only boost Google's hardware value and trade significantly, possibly catapulting the company ahead of its competitors in the mobile development race.
Google's blog post says the merger will combine "hardware, software, and services" between the two companies. Originally, Nest was supposed to be the core of Google's hardware efforts, but instead Google made a decision to create a separate division to produce its Nexus, Pixel, Chromecast, and Google Home devices. In 2017, Nest doubled its hardware portfolio to sell more devices than the previous two years combined. Nest operated on its own as part of the establishment in 2015 of holding company Alphabet, which also explored selling the firm in 2016.
Nest has shipped more than 11 million products since first becoming available in 2011, Fawaz said. Nest and Google also will stay at their separate offices "for the foreseeable future", she said.
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Alphabet's Google unit last week announced it had paid $1.1bn to buy a large chunk of HTC's hardware operations, gaining around 2,000 engineers in Asia.
"We've had a head start on collaborating since our teams already work closely together, and today we're excited to make Nest an integral part of Google's big bet on hardware", the company writes. Both Google and Amazon continue to add new speakers to its lineup, while new competition has arrived, albeit delayed, from Apple Inc. with its premium HomePod, which goes on sale Friday.
But what difference will merging Nest into Google actually make to customers?