Did Google Buy Nest Labs to Compete With Apple?

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Jan. 13 (Bloomberg) –- Bloomberg’s Ari Levy and Jon Erlichman report on Google’s purchase of Nest Labs for $3.2 Billion and what’s next for the company. They speak to Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Internet search for google has been the core business, desk top search and advertising.

Increasingly, the internet is not based on search.

It is not based on desktop.

It is what you're doing on your mobile phone, what you were doing on your tv.

What you're doing in your living room.

What your thermostat is doing.

Those are not areas where google is a leader.

That is where the internet is going.

You will knows if it wants to continue to be the internet company, it has to go to where the internet is being used.

That is why the data here is crucial to google's business.

Apple -- we have not seen apple spend this kind of money on companies.

Apple may be interested in that and not willing to pull the trigger because they do not want to spend the cash or the hubris of the company does not allow them to, we do not know.

Apple may be a little trigger shy.

We were talking all last week about the consumer electronics show.

Samsung announced to the connected home.

Companies are in watches and glasses and smart tvs.

Apple is doing none of that.

Is apple a little bit behind, jon?

If we could see everything apple is working on, we might go, oh, i get it.

Of course apple does not want to tell us, so we cannot answer that question well.

You also wonder if apple were to do a deal like this, it would raise questions about whether bringing tony fidel -- faddell back into the company, whether that would create all these new storylines.

They had a pretty good -- there was a focus on this company from google's capital.

They had a focus on where this economy was going.

If there was a thermostat -- that may have gotten them excited and in turn google got excited and said, hey, $3 billion-plus, that is good with us.

I interviewed tony faddell three months ago and he gave zero indication he was interested in selling the company.

I asked him about how he thought more broadly about future products or nest.

Take a listen to what he had to say.

Inc.

About us smartphone, all of the sensors in a smartphone, -- think about a smartphone, all of the sensors in a smartphone, and what kind of apps you can layer on top of it?

So what is next for nest, ari?

They have done this mode detector.

-- they have done a smoke detector.

What else?

Going to the digital world -- everything can be monitored.

Things that i put on my stove, to boil water.

Anything in a home, why couldn't it be connected westmark why couldn't nest be the software or the hardware layer for it?

Thank you for weighing in on

This text has been automatically generated. It may not be 100% accurate.

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