Nest to Buy Dropcam in $555M Deal

Smart thermostat and smoke detector maker Nest is buying the home monitoring camera company Dropcam in a US$555 million deal. Nest itself was recently purchased by Google, but this purchase is happening independently of the Internet search giant, which puts Dropcam completely under Nest's control.

Nest buys home monitoring camera company DropcamNest buys home monitoring camera company Dropcam

Dropcam is known for its easy to use home monitoring systems, which could be a point of concern for people who are already distrustful of Google and its uncanny ability to know so much about us. Privacy concerns were a big concern when Google bought Nest because the idea of a company monitoring what we do in our homes so that information can be sold to advertisers is a little too Orwellian for many people.

Adding Dropcam to the mix takes that a step further by putting eyes in our homes so not only can our actions be monitored, but also seen.

Those concerns, however, are unwarranted because Nest said Dropcam will fall under its privacy policy which should keep Google from looking into our homes. The promise that our personal lives will stay private came from Nest co-founder and Vice President of Engineering Matt Rogers talking with Re/code.

Mr. Rogers said,

Like Nest customer data, Dropcam will come under Nest's privacy policy, which explains that data won't be shared with anyone (including Google) without a customer's permission. Nest has a paid-for business model and ads are not part of our strategy. In acquiring Dropcam, we'll apply that same policy to Dropcam too.

Nest's Dropcam purchase also gives it the company's online data storage service. Currently, Dropcam customers can pay $99 a year for online hosting of their videos.

Nest will be paying cash for Dropcam. Neither company has said how soon they plan to close the deal.