Abney Associates Comments as Google Buys Nest.
Abney Associates advising investors on Internet giant Google Inc., as they continues to spend freely in efforts to match Apple Inc's distinct advantage when it comes to consumer gadgets, buying digital thermostat maker Nest Labs Inc.
Online, February 3, 2014 (Newswire.com) - The divide between the giants of the tech industry grew a little smaller today as the unquestioned dominating authority of the internet, Google Inc., took clear steps to erode the hardware and products position of power controlled by another giant, Apple Inc. The move to gain more of a presence in consumer gadgets saw the search engine leader agree to pay $3.2 billion for Nest labs Inc., a maker of high-end digital thermostats.
The purchase of Nest Labs is the third most expensive by the Mountain View based Google after those of the 2012, $12.4 billion buyout of Motorola mobility and the $3.24 billion purchase of DoubleClick in 2008. For Google however the purchases is not expensive or major given that the company had a reported $58.4 billion in cash or equivalents listed on its balance sheet in September of last year.
"By acquiring Nest, Google of course gets the line of products already offered by the company and can add these to the list that might well be forth coming from the acquisition of Motorola Mobility. What they also get is hard to put a price tag on however and that is Tony Fadell, the founder of nest and the former Apple Senior Vice President responsible for a lot of the design and ultimate success of Apples iPod and iPhone product line. This in itself is a very good reason for buying Nest, if like Google you are pushing into the tech world in physical products," expanded a senior advisor at Abney Associates.
The acquisition of Nest and its heavily Apple sourced workforce is expected to be of great aid to Google as it expands effort in making a market share for itself in the consumer hardware sector of wireless devices and internet supported gadgets. The market for such products is expected to continue to grow with economic value between $2.7 and $6.2 trillion per year by 2025.
"Google is taking serious steps to break into the world that is dominated by Apple, to date without much success outside of their Android operating system for smart phones. Nest takes them not only straight into the world of periphery hardware, but gains them industry changing concept designers that saw Apple ascend to the top this last decade or so and that is a serious coup for any company," ended the senior advisor at Abney Associates.
Abney Associates are a Hong Kong based company that provides a range of financial services to individual clients, portfolio companies, corporate investors and entrepreneurs who wish to take unbiased financial advice.
Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.