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Amazon

Amazon buys smart doorbell maker Ring for a reported US$1 billion

Amazon has previously invested in Ring through the Alexa Fund, its investment arm exclusively investing in Alexa-powered devices

PUBLISHED : Wednesday, 28 February, 2018, 1:07pm
UPDATED : Wednesday, 28 February, 2018, 1:07pm

By Eugene Kim

Amazon is buying smart doorbell maker Ring, a deal that will allow Amazon to work with the team on home security, the companies said.

In an email statement to CNBC, Ring’s spokesperson confirmed the deal, saying, “We’ll be able to achieve even more by partnering with an inventive, customer-centric company like Amazon. We look forward to being a part of the Amazon team as we work toward our vision for safer neighbourhoods.”

Amazon is expected to keep Ring as an independent business, much like it has with other its acquisitions, like Zappos and Twitch, according to GeekWire, which earlier reported details of the deal. The deal is expected to be worth over US$1 billion, according to Reuters.

The two companies are expected to announce the deal later today.

Amazon’s spokesperson also confirmed the deal, saying, “Ring’s home security products and services have delighted customers since day one. We’re excited to work with this talented team.”

Ring has raised US$209 million so far, and was last valued at $760 million, according to Pitchbook.

This isn’t the first time Amazon has partnered with Ring. The e-commerce company previously invested in Ring through its Alexa Fund, which exclusively invests in companies that help scale its Alexa voice-technology.

In a previous interview with CNBC, Ring CEO Jamie Siminoff described his relationship with Amazon and Alexa Fund as “nuclear power,” in reference to the company’s potential to both help and destroy your business.

“To say Amazon will not compete with you is lunacy because they compete with everybody,” Siminoff said. “They’re like nuclear power. They are very, very powerful and you can get amazing, clean energy from them but there’s also the possibility of getting human radiation if you’re not careful.”

Read the original article at CNBC