Amazon Purchasing Wi-Fi Startup Eero
Amazon.com Inc. (NASDAQ: AMZN) and mesh-networking Wi-Fi company Eero have entered into a merger agreement for the retailer to acquire the startup for an undisclosed sum. The terms of the deal have not been disclosed and neither company has specified what the deal means for their current or future products. In a press release, Dave Limp, Amazon’s senior vice president of Amazon devices and services, said that the two companies “have a shared vision that the smart home experience can get even easier.”
Eero specializes in mesh Wi-Fi networking systems that spread WiFi coverage all around your home, enabling coverage in areas that do not get good coverage with a traditional Wi-Fi router and boosters. Eero sold its products through a variety of retailers, including Amazon and Best Buy. One of the biggest draws of their products was their privacy claims. The company said in a tweet that it “does not track customers’ internet activity and this policy will not change with the acquisition.”
This purchase, along with other recent acquisitions, suggest Amazon wants to place itself in every corner of the home. Amazon’s virtual assistant, Alexa, can now control everything from smart microwaves to washing machines and televisions. The company’s purchase of Ring last February helped it penetrate deeper into the home security space. It also completed an acquisition of upscale grocery chain Whole Foods, giving it entry into millions of consumers’ kitchens.
There are many ways Amazon can leverage its purchase of Eero. The startup could turn into another Amazon sub-brand like Ring, which operates as an independent subsidiary and continues to introduce new products. Amazon could also start to build Eero’s technology into its current product lineup, such as to enhance the features of the Amazon Echo or the Fire TV. The technology could also be used to learn more about how people use internet connections in their homes.