Amazon acquires smart doorbell maker Ring
e-Commerce giant Amazon (AMZN) is reportedly buying Ring, a video doorbell maker, for over $1.0 billion, although the deal price was not officially announced. According to Recode, the Ring deal could be the second-most expensive acquisition by Amazon after the $13.7 billion Whole Foods acquisition.
The deal comes just months after Amazon acquired Blink, which makes wireless home-security cameras, in December 2017 for $90.0 million. Amazon’s past collaborations with lock manufacturers Kwikset and Yale also support its home security interests.
Amazon expands partnership with Ring
This deal underscores Amazon’s efforts to grow in the home security market, which is expected to reach $51.5 billion per year by 2022, according to Research and Markets. With the acquisition of Ring, Amazon plans to provide users with smart doorbells that combine with a smart security camera and a smart lock for keyless entry, guest access, and in-home deliveries.
Amazon and Ring were already working together before the acquisition, where Ring’s range of connected home security devices can be linked with Amazon’s digital voice assistant, Alexa. The addition of Ring is expected to expand the partnership through smart-home devices and Amazon’s robust delivery network.
Home automation market is growing
Amazon’s acquisition of Ring would compete with Alphabet’s (GOOGL) Nest Labs, the Internet giant’s home automation segment, which was acquired for $3.2 billion in 2014.
Tech giants Apple and Facebook (FB) are also expanding in the home space. Apple’s smart speaker, HomePod, can be controlled via Apple’s voice assistant, Siri. Facebook’s device, Portal, is expected to compete with Amazon’s Echo Show in the home speaker segment.