Amazon’s Ring acquisition completed
In February 2018, Amazon (AMZN) announced that it had acquired home security startup Ring for over $1 billion. That acquisition was closed on Thursday, April 12. Ring is Amazon’s second-biggest acquisition ever, with its biggest being the $13.7 billion acquisition of Whole Foods Market.
The e-commerce giant announced discounts to Whole Foods products immediately after the acquisition was made official. Similarly, Amazon has slashed the prices of the Ring Video Doorbell by $30 to $100.
The acquisition gives Amazon an edge in the home automation segment
The tech giant announced that Ring products, which will keep the Ring name for the time being, will join a number of other smart home devices under Amazon’s umbrella. The company is moving toward a smart-home ecosystem driven by Alexa, which is appearing in more and more homes through Amazon’s Echo devices.
Amazon also acquired Blink, another home automation company, in December 2017. Blink sells battery-powered smart doorbells and security cameras. These acquisitions give Amazon the edge over competitors such as Google in the smart home segment.
Ring is set to compete with Google-parent Alphabet’s (GOOG) Nest Labs. Alphabet acquired Nest Labs for $3.2 billion, four years ago. Amazon stock has risen 23.8% this year despite recent volatility.
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