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Google may fold Nest into its hardware business

Nest may no longer operate as an independent part of Google's parent company, Alphabet, according to a Wall Street Journal report.

Nest may be nestled into Google's hardware business.
Nest may be nestled into Google's hardware business. 

Nest could soon be back in the core Google fold.

Google might integrate Nest into its hardware business, rather than letting its smart-home company operate independently, according to The Wall Street Journal. The publication reported that the two groups have overlapped on efforts in the past, including a software product called Weave. 

Google and Nest declined to comment. 

Google bought Nest in 2014 for $3.2 billion and let the company keep its own leadership and operations. In mid-2015, Google said it would reorganize itself under the umbrella of parent company Alphabet. Google would focus on core efforts like search and mapping, while Nest, human aging research company Calico, and other Google-owned businesses would operate on their own. 

As Google looks to compete more with Amazon in the home, it makes sense for the company to work more closely with Nest. Nest, which was a smart home pioneer with its Internet-connected thermostat, has faltered since the Google acquisition. Folding Nest into Google would help the companies focus their efforts and avoid doubling up on projects. 

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