Nest, the Internet-connected home device company owned by Google, was informed last week that Amazon won’t be selling any of the recent products the company launched.
Citing a person familiar with a conference call between the two companies, Business Insider reported that Nest employees were told the decision not to sell Nest products — including the Nest thermostat and Nest Secure home security system — came from the top and had nothing to do with the quality of the products. The Nest employees who took part on the call walked away with the impression that Amazon head Jeff Bezos was driving the decision, reported Business Insider. Amazon’s retail team did not say that explicitly during the meeting, the report noted.
Because of Amazon’s decision, Business Insider reported Nest opted to stop selling all of its products on the eCommerce platform as of now. Once the current inventory is sold out, Amazon customers won't be able to purchase any Nest products. The report noted that Google informed Nest previously that they had heard Amazon wouldn’t sell its newer products as it continues to battle with Google. Nest decided to pull the products it sells on Amazon because it thinks it's best that they offer their entire product line or nothing at all, noted the report.
The move comes as Amazon is beefing up its own offering in the smart home market — where it sees Alexa, its voice-activated assistant, controlling all sorts of features and functions in the home. Late last month it acquired Ring, the digital security company that sells the popular Ring doorbell camera. According to CNBC, a Ring spokesperson confirmed the deal, telling CNBC the company will “be able to achieve even more by partnering with an inventive, customer-centric company like Amazon. We look forward to being a part of the Amazon team as we work toward our vision for safer neighborhoods.” CNBC reported Amazon is expected to maintain Ring as a standalone business, a past strategy with other acquisitions. While financial terms of the deal were not disclosed, Reuters reported the deal could be worth more than $1 billion — potentially one of the biggest acquisitions for the company. Ring has raised $209 million in funding, giving it a recent value of $760 million or more.