Nest gets new leadership as it moves closer into Google

[MUSIC] Today NEST is announcing that it's CEO Marwan Fawaz is stepping down. And that the group will be combining with Google Home Device Group. That means that the whole team will report to Rishi Chandra, who is a 12 year Google veteran. I've been able to make contact with former employees and they tell me that there was actually a lot of discontent with [UNKNOWN] and his management style. Some of it is loyalty to Tony Fadell. He started the company, came from Apple and he's known as the Godfather of iPod. He had some key roles in designing the iPhone. Nest made a really big splash in 2011, when it came out with its first product, the Nest Learning Thermostat. It followed it up with a smart smoke detector that also got really good reviews. After Nest was acquired by Google, some people inside and outside of the company felt that their progress had stalled. There was a kind of a clash of cultures, a lot of the people that I spoke to actually did leave cuz of management problems In 2016, sources say the Alphabet actually considered selling Nest and one source said that the company had serious talks with Amazon. Ultimately no deal materialized but now when you look at Amazon and Nest and Google the companies seem very outwardly combative to each other. Google which owns YouTube cut off YouTube access to One of Amazon's video devices, some NEST in Google products aren't sold on Amazon so there's a big rift between the two. Going forward, you'll wanna look for the actual products that Nest puts out. Do they work better with the Google Home and the Chrome cast? Really those integrations will be the test of whether this is working. Because when it really comes down to it, it's about the consumers, and if they're making good products that consumers can actually use. [MUSIC]