The acquisition of Eero by Amazon in February meant another important entry for the home by the online retailer after voice aides and other connected devices. However, consumers reported the loss of another brand of independent hardware. A new report today reveals that Amazon bought Eero in a sale to the fire, and that Google and Nest raised serious competition.
The acquisition price was never disclosed publicly by Amazon or Eero, but Mashable This afternoon he reported that it was for a total of $ 97 million. The edge Since then, he has confirmed that figure, which is less than the $ 148 million that Eero raised in investor financing.
Former Eero employees in today's report considered Google Wifi the "biggest challenge". The network mesh solution of Made by Google competition had, and continues, undercutting Eero in the price.
Announced in October 2016, Google Wifi was launched later that year for $ 299 as a three-pack. An identical Eero package was $ 499, while a single Google unit was still $ 129 versus $ 199.
Compared to Eero, Made by Google created a single piece of hardware and did not distinguish between hubs and beacons designed to expand existing systems. While Eero has since lowered prices, with Amazon like to do the same, $ 299 still only gets buyers one eero and eero Beacon.
Meanwhile, the Mashable The report reveals how Eero tried to "take a step forward and diversify" its product line. The company was working on an intelligent home security system called Hive, but Nest Secure was announced in September 2017. The competition project was soon abandoned, and Eero then proceeded to cut staff in 2018.
Both pieces are an interesting vision of how hardware is a difficult market, since the manufacturer of Wi-Fi at the time of purchase has a debt related to manufacturing costs. As a result of paying $ 40 million in debt and other transaction costs, the actual sale price is reported closer to $ 54.6 million.
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