Samsung to buy SmartThings


(Jon Allsebrook) #1

Wow just seen this on TechCrunch and yes this is probably the wrong cat but no idea where else I would post it…

Interesting to see where this goes especially as Samsung is very much an Android based ecosystem.


Smartthings integration with Samsung?
(Patrick Stuart [@pstuart]) #2

Just saw the article. Interesting. Probably explains how quiet things got around here.

Sure hope they keep it an open platform.

Congrats.

Here’s the article.


(Jon Allsebrook) #3

Yeah congrats to the team for sure. Hopefully they can now push on with developing what techcrunch refer to as

‘Samsung most likely bought the startup to get out ahead of Google’s Nest efforts. With this buy, Samsung obtains a mature home automation platform that just needs some marketing help. And Samsung has a hefty marketing budget.’

I really hope this gives the team the backing to develop and build on a solid HA and monitoring platform with a lot more integrations.

Oh and +1 for keeping it open but I have a feeling they will.


(Varun) #4

Say it ain’t so! This is heartbreaking news.

I was a Super Early Bird backer on Kickstarter and I backed them because they were an independent company and of all the things in the world, I didn’t want someone to come along and monetize what I did in my house. I just ordered a replacement for the now-owned-by-Google Nest and this happens. Literally the package is due on Thursday.

Samsung destroyed my beloved Boxee when they tried to dump some useless corporate OS on it - a huge, thriving community killed in a single weekend.


(Phi D.) #5

If they get “Boxee’d” then that means SmartThings might just become a zombie put on life support and the team will be folded into Samsung Corporate, never to be heard from again. (see http://www.boxee.tv/ )


(Varun) #6

This is Samsung we’re talking about, a company that thinks “open” means “runs a Samsung corporate-approved OS on Samsung hardware.” If this is true - and I really hope TechCrunch is wrong and in this case greed hasn’t won out over a desire to better the lives of individuals - then this is the end of SmartThings.


(Patrick Stuart [@pstuart]) #7

Yeah, its been brewing for a long time, Apple and HomeKit, Google and Nest Labs, Microsoft and to be announced… Samsung now has Smartthings…

As long as Zigbee and Zwave exist as standards for devices, it really won’t matter the platform. It comes down to who can execute code the best and how it functions to the masses.

This probably explains ST’s reluctance to get into media proxies. Let the Samsung TV’s be the hubs and control interfaces.

Another vendor lock in on the horizon I can see…

Let’s hope they stay independent for a while.

Wonder who Sony will buy?


(Jon Allsebrook) #8

I guess my hope they keep it open is based on the belief in Alex, Ben et AL who take the time to respond to our posts in forums and our tweets.


(Geko) #9

Well… Congrats to the ST team! I hope you all profit from the acquisition. Although, I think they sold out too early. It also leaves a lot of questions open about future of the “open platform”. I just keep my fingers crossed Sammy is not going to muck it up.


(Dbmet) #10

Yup was going to add my sprinkler system to smartthings. Not now. Sending it all back and will start looking for something. I have a feeling this will get absorbed into the corporate giant Samsung.


(Varun) #11

Haha cute. If it’s true, wait until the deal closes - then you’ll have to deal with Samsung support and the absolute geniuses that populate that crowd.

This is as bad as 18 August 2011, when Leo “Dipshit” Apotheker cancelled WebOS.


(Patrick Stuart [@pstuart]) #12

Update, I’ve heard and now confirmed from TechCrunch, this deal is not yet done. So who knows… Maybe someone else has entered the bidding? Maybe second thoughts from the founders?

Love sites like TechCrunch proving that new journalism is no better then TMZ. Who cares about sources, who cares about verifying info, just post it…

My personal feelings are I hope they don’t sell out, it will mean the end of a good thing…


(Geko) #13

Agreed. Sumsung is not known for respecting user’s privacy. They’re collecting data from their SmartTVs and now from SmartThings.


(Brian Smith) #14

I have mixed feelings on this. On one hand, I think it is great for the founders of the company to have their ideas and approach proved valid. On the other, Samsung does not have the best track record. I’m hoping they look at it more like the Nest acquisition by Google. So far, they are independent. We’ll see how long it lasts. But, Samsung might be considered geniuses if they dumped money into the ST team and just put the Samsung logo on it - Samsung SmartThings. The ST team seems to have the right approach and momentum. Let them continue and be a “big investor”. But, Samsung, as history shows, has trouble not meddling. Maybe they have learned from their past. Maybe they read this…ok, that last part was just crazy talk.

Basically, we have to all sit back, congratulate the ST team, and see where this takes us…and all cross our fingers! :smile:


(Jon Allsebrook) #15

Yeah I see TechCrunch just changed the article headline and did a small update to the copy. So now they are in talks. Pretty sloppy of TC and especially Alexia to jump the gun on an article like that.


(Patrick Stuart [@pstuart]) #16

Unless it was on purpose… Acquiring / selling businesses is a strange game played by experienced players. No doubt there are a ton of VC / backers of ST that have to weigh in on acquisition. Never can control the leaks, especially if someone isn’t happy with the details.

Time will tell, hopefully official communications one way or another will come soon. But the pattern fits, gone quiet for awhile, due diligence phase, offer phase and probably soon to close phase pending approval.


(Jon Allsebrook) #17

Another take on this with a no comment from an St spokeswoman

https://gigaom.com/2014/07/15/if-samsung-buys-smartthings-its-a-win-for-both/


(Patrick Stuart [@pstuart]) #18

Just sitting back and trying to put a valuation on Smartthings and personally 200 million is a bit too low for what this could be.

Maybe I’m missing something, but the hardware, software, cloud based development environment, there really isn’t much in the way of competition offering all of this direct to consumers of similar quality.

But then again, Glenn Taylor bought the Minneapolis Star Tribune newspaper for 100 million, so ST should be at least worth 2X a newspaper publisher.


(Geko) #19

Yeah, it’s also ‘classy’ :slight_smile:

In reality, this is a sort of protocol pissing contest


(Geko) #20

On the other hand, it’s more that x10 Series ‘A’ funding, so it’s a good payout for investors. Asking for more would be too greedy. I don’t believe ST is profitable, and probably even far from breaking even. So they either have to go through Series ‘B’ or sell out.

As far as ST valuation, I think it’s more appropriate to value them using “social network” or “mobile app” metrics, rather then hardware OEM. I don’t know how large is their user base, but I’d guess no more than 20,000 users. So it works out to be $10,000 for a user. Not bad at all.