Google’s Nest to acquire video monitoring startup Dropcam for $555M

Smart thermostat maker Nest is in the final stages of buying video monitoring startup Dropcam. The company will pay $555 million, according to the Wall Street Journal.

Nest said in a blog post published Friday afternoon that it plans to make Dropcam and Nest products work together:

Many of you already own Dropcam products and have asked if we could make them work with Nest. Today, we’re one step closer to making that happen.Eventually, the plan is for us to work together to reinvent products that will help shape the future of the conscious home and bring our shared vision to more and more people around the world.

Customer service and privacy for the two companies will be consolidated. Nest said it will also use the same business model for Dropcam, which means no ads will appear on the platform.

Nest's thermostat. Image courtesy of Nest.
Nest’s thermostat. Image courtesy of Nest.

Dropcam was founded in 2009 to make it easier to bring security cameras into the home. The startup’s cameras retail for $149 or $199, plus a weekly or monthly subscription for accessing video in the cloud.

Nest, which makes thermostats and smoke detectors that learn patterns and can be controlled from a mobile device, was acquired by Google in January for $3.2 billion.


“Nest and Dropcam are kindred spirits. Both were born out of frustration with outdated, complicated products that do the opposite of making life better,” Dropcam CEO and co-founder Greg Duffy wrote in a blog post. “After numerous conversations with Nest Founders Tony and Matt, it was clear that we shared a similar vision.”

While Nest has found success with its smart thermostat, its second device — a smarter smoke alarm — has struggled a bit. Nest launched the smoke alarm late last year, but earlier this year had to halt sales of the device after detecting a flaw in a feature that allows consumers to wave their hands to turn off the alarm. A few days ago Nest put the smoke alarm back on the market for a cheaper price, and with the waving feature disabled.