Amazon buys Eero to strengthens its home device
Amazon has reported that it’s acquiring Eero, a developer of internet routers that can be easily connected in the home. Both the companies haven’t yet disclosed the terms of the deal. The deal strengthens Amazon in the smart home arena, an area Amazon has been very focused on in recent years. Eero’s routers use multiple access points that work together to blanket a home with WiFi coverage. Presently, Amazon’s primary home device is its own Echo smart speaker, powered by Alexa.
Amazon’spurchases other companies
Eero marks Amazon’s second major smart home acquisition since its purchase of video doorbell maker Ring for close to $1 billion in last year. In late 2017, it acquired security camera company Blink for a reported $90 million. Amazon previously dabbled in the Wi-Fi market as an investor. In 2016, the company backed a start-up called Luma as part of a $12.5 million round. Luma, which also raised money from GV (formerly Google Ventures), was acquired last year by First Alert, a unit of Newell Brands.
Competition in router market
In the router market, Google has a competing product called Google Wifi. Similarly, tech-giant Apple discontinued AirPort home routers last year and Ciscosold Linksys to Belkin in 2013. Moreover, a leading smart device provider, Netgear’s stock was also down to 5 percent.
Eero’s goal and investment Eero’s goal is to make Wi-Fi simple to use, easy to install and effective across many rooms in a house. According to a report, Eero sold $2.5 million worth of products in its first two weeks after the company began accepting preorders. A single Eero device costs $199 and covers up to 1,500 square feet. Users can add a so-called beacon for another room for an additional $149 or can buy both combined for $299. The company also sells a security service for $99 a year.The company