Google acquires Dropcam (Internet monitoring for home)

Companies in Relationship

Dropcam, Google

Deal Facts

Initial Announcement Date: 6/14

Consideration: $517 million in cash (Source: Google 10-K)

Google acquires Dropcam, which develops and markets wi-fi-connected video cameras and services that stream live video to mobile apps. The service sends alerts based on activity sensed by Dropcam cameras and lets users communicate with people in their homes while they are away. The company's products and services can be used as a home-security system.

Dropcam had raised $47.8 million from Institutional Venture Partners, Kleiner Perkins Caufield & Byers, Felicis Ventures, Menlo Ventures and Accel Partners, as well as other investors.

The deal is subject to regulatory approval.

Strategic Implications

Google/Nest continues to add products and services in its push to become the dominant home operating system for all types of connected devices.

Dropcam will adhere to Nest's privacy policy, which implies data from the monitoring service won't be shared with Google or any other entity without a user's permission. Dropcam does not plan to sell ads at this time.

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