Amazon is acquiring Ring, the digital security company that sells the popular Ring doorbell camera.
According to reports from CNBC, a Ring spokesperson confirmed the deal, telling CNBC the company will “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 neighborhoods.”
CNBC stated Amazon is expected to maintain Ring as a standalone business, a past strategy with other acquisitions. The eCommerce giant has also acquired Zappos and Twitch in recent years. While financial terms of the deal were not disclosed, Reuters reported the deal could be worth more than US$1 billion potentially one of the biggest acquisitions for the company. Ring has raised US$209 million in funding, giving it a recent value of $760 million or more.
An Amazon spokesperson also confirmed the deal to CNBC in a statement saying, “Ring’s home security products and services have delighted customers since day one. We’re excited to work with this talented team.”
The acquisition comes as Amazon is expanding more into the home security market. However, its Amazon Key camera and service, where couriers can enter consumers’ homes and drop off packages, has raised some concerns. Earlier this month, a security researcher discovered a hack that hinders Amazon Key’s ability to properly lock a door, allowing anyone to get into a Key-enabled home.
According to Tom’s Guide, a Bay Area researcher identified simply as MG, posted a proof-of-concept video on Twitter.
“I’m withholding details until Amazon has a chance to fix this,” MG said. “Don’t want this being abused in the wild.”
Full Content: Pymnts
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