Amazon has reportedly agreed to acquire connected-doorbell startup Ring for more than $1 billion, according to Reuters.
With crushing competition looming, Ring, the home security device company that has had a near monopoly on the market for video doorbells, is selling itself to Amazon for a reported $1.1 billion. “I’m beyond happy,” said Ring founder Jamie Siminoff about the deal, “incredibly so.”
The move helps Amazon expand further into the consumer market, including providing security for package deliveries. J.P. Morgan Chase & Co. advised Ring on the sale, said the person, who asked not to be identified because the matter is private.
The company previously acquired another security-focused smart home company, Blink. But Ring, the one-time failed Shark Tank contestant that's now worth more than a billion dollars, is undoubtedly Amazon's biggest move into the space yet. The company, which was started in 2013, makes Wi-Fi connected doorbells, security cameras, and home security systems.
As recently as last year, Ring had a 97% share of U.S. video doorbell sales, according to market research firm NPD Group. The devices, with help of tiny cameras, let users see video broadcast, using an app on their phone.
Through its connected devices such as its Echo smart speaker with the voice-activated assistant named Alexa, Amazon has been pushing for a bigger presence in homes. Amazon has scored another touch points by buying Ring said James Cakmak, an analyst at Monness Crespi Hardt & Co.
The move is particularly interesting in the context of Amazon Key, the retailer's new service that allows delivery people to enter homes via Wi-Fi-connected door locks and cameras. Ring is considered one of the most dominant smart home companies today. The company says it sold 140,000 products just in one 24-hour period on QVC and it's not difficult to imagine why Amazon would be attracted to the company.