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Google's Nest Buys Dropcam for $555M

 & Chloe Albanesius Executive Editor, News

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Google's Nest Labs has acquired Dropcam for $555 million.

For now, the two firms will operate independently, and it will be business as usual for Dropcam users. But eventually, "we'll incorporate Dropcam into how we do business at Nest. That includes how we handle everything from customer support to customer privacy," Matt Rogers, Nest founder and head of engineering, wrote in a blog post. Ultimately, Nest wants to "reinvent products that will help shape the future of the conscious home."

Dropcam produces small cameras that let users monitor their homes from afar, while Nest has tackled the digital home with the Nest Learning Thermostat and Nest Protect smoke alarm. According to Rogers, Nest looked at a number of different camera companies before making an offer to Dropcam. "I can say without a doubt, Dropcam has the best products, services, and customer experience in the business," he wrote.

"Many of you already own Dropcam products and have asked if we could make them work with Nest," he continued "Today, we're one step closer to making that happen."

In a separate blog post, Dropcam co-founder Greg Duffy said "Nest and Dropcam are kindred spirits. Both were born out of frustration with outdated, complicated products that do the opposite of making life better."

Duffy founded Dropcam with Aamir Virani in 2009 "with a simple mission — to help you know what goes on at home when you aren't there," he wrote. "We had both seen our dads struggle with 'IP cameras' and traditional security cameras that were some combination of hard to use, expensive, and low quality."

Over the years, PCMag has reviewed the Dropcam Echo, HD, and Pro (pictured above), each of which was an improvement over the last, with the $199 Pro earning our Editors' Choice. "You don't even need pan or tilt, as the high-resolution, wide-angle lens on the new Dropcam Pro can zoom in and see anything. It's the best consumer-grade video-surveillance camera we've tested," we found last year.

Nest, meanwhile, was acquired by Google in January for $3.2 billion. It was in the news recently after a glitch with the Nest Protect smoke alarm forced it to temporarily halt sales. The device included a feature that allowed users to turn off the alarm with a wave of the hand, but during internal testing, the company found that "a unique combination of circumstances" could unintentionally activate Wave, therefore delaying an alarm in the event of an actual fire.

The device recently returned to the market without the Wave feature, for a discounted $99, a $30 price drop.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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