Amazon just bought Ring and its smart home devices for $1 billion

  • Amazon just bought Ring and its smart home devices for $1 billion

Amazon just bought Ring and its smart home devices for $1 billion

Amazon and Ring, the maker of video doorbells and security cameras, have come to an agreement where the former will acquire the latter.

The move helps Amazon to broaden its reach further in the consumer market, particularly in offering security for package deliveries.

Additionally, Amazon recently launched Amazon Key in the USA - a service that allows doors to be unlocked with a smartphone instead of a physical key. Ring's security devices are also compatible with Amazon Key and camera system that lets delivery personnel put packages inside the house to avoid theft.

Ring's statement said: "We'll be able to achieve even more by partnering with an inventive, customer-centric company like Amazon".

A few weeks ago, the Alphabet-owned home security company, Nest Hello, announced a March ship date for their new "smart" doorbell. Mr. Schoenfelder speculated that Amazon could seek to make home security part of its Prime membership service, which today includes free and fast delivery of orders and video streaming.

Details on the deal are still very light, however, reports by Reuters said that the deal valued Ring at more than $1 billion. But, keep in mind, Amazon just bought Blink, another smart home company, in December. Amazon has positioned its Echo smart speaker, powered by its Alexa voice assistant, as a smart homes device.

Amazon and Ring did not immediately return Business Insider's request for comment. As well as the video doorbell that Ring is most well-known for, the company has a suite of security products including cameras and an alarm system - although the latter is now on hold due to legal issues.

Amazon also stands to make additional revenue from the sales of Ring's devices and video plans.

Amazon's acquisition of Ring marks another step forward for the tech giant to transition itself into an individual company.

Analyst Michael Pachter said that security and alarm provider ADT Corp. could experience a huge drawback, since Ring's camera technology is more superior to physical security.