ADT: "Hate That Company" Loses Billion On Amazon Ring Deal

By: John Honovich, Published on Mar 02, 2018

It has not been a good 2018 for ADT.

And this week has been even worse.

In the aftermath of Amazon acquiring Ring for a billion plus, ADT's market valuation dropped a billion, as investors fear Amazon beating ADT.

Indeed, on CNBC, investor Jason Calacanis declared ADT not only the big loser of the deal but that people 'absolutely hate that company', as shown in the video embedded below:

Is Calacanis just hot air? Does he hate ADT as much as many security professionals do?

First, on the positive side for ADT.

Positive ADT - Local Trucks and People

*** *** ************ ******** for ***, ******** ** Amazon ** ******, ***., is **** *** *** a ******* ******* ** trucks *** ***** ****** who *** ** ** a ********'* ****. **** is ** ***** ** terms ** ***** *** fixing ***** ** **** as ********* ****-**-****-*******. ** the ****** **** *** can ***** **** *****, in ***** ** ****** quality *** **** *********** for *********, *** **** companies **** ** ** a ************.

Risks *** *** - ***** ********* *** ********** ****** *******

***** *** ***** *** ADT. *** *******, *** did *** *** *** nicknames ********* '****** **** Twice' *** '******* **** Technician' *** *******. ** fairness, **** ** * 'new' *** *** *** has ****** ******** ********** in *** **** *** focused ** ********* *********.

*** ***** ***** ** how **** ******* *** ** done ********. *** **** 'DIY' ****** *** **** home ******** **** ****** online ******* *** *** rest, *** **** ********** they ***** **.

Amazon *******?

****** *** **** ******* up ***** *** ************ services ******* *** *******, ** ******* ****** is *** *** **** from ***** **** ** run ***** *** ************ services *** ******** *******. Amazon ***** ** '********' but ** ** *** clear ******* **** **** to ***** ** **** time *** ****** ** have ***** *** (** extensive *************) ***** ******** for ****.

ADT ***** **** ** ******** ******** ** **** *********

** ********** ** *** tech *********, *** ******* weakness ** ****** ***'* ***** and ********* *****. ***, like ****** *** *********** security ******* *********, ***** a **** *********** ********** of ***** ***** ** sales *** ********* (*.*., see *** ******** *********** **** Economics). *** *******, ** a ******** ** ****** $40 *** *****, $** - $** ** ****** going ** ***** *** marketing ********.

**** ** ***** *** tech ********* ***** ** able ** ** **** better. ******, *** *******, already *** *** ******* Prime *******, **** ************* with * **** ****** of *********. **** ***** ****** in **** ***** ***** costs *** ******** **** ADT, ******** ** ***** much ***** *******.

Will ******?

******** ****** *** ******** on **** ********** ******** systems *** ******* ** that *********. *******, **** Amazon ****** ****** ** being * **** ******** provider? *** **** ****, along **** ******'* ************** in ** **** ***** result ** ****-***** ****** against ****? ** ******* to ** ****.

** *** ********, *** pressure ********* ** ***** on *** ******* ***.

**** ** *** ***** the ****** ***** *** ADT?

Comments (24)

Undisclosed #1

03/02/18 04:33pm

Also working against ADT is the trend of residential security products becoming very DIY and simple to install. Even for cases where the homeowner does not want to do the installation (or is incapable), the products can be installed by dozens of local handymen, A/V guys, geeky neighbor kid, or the CEO's daughter.

That army of local trucks and people may shift from being a benefit to becoming a liability.

Undisclosed Manufacturer #2

03/02/18 05:53pm

Remember the last time the Bell Telephone Man came to your house to install a brand new mint green Bakelite phone at your house? Me neither.

Telephones used to be wizardry that only a trained professional would touch, but times have changed. Home security is following the same route. I would not want to be banking my future on residential or small business security.

Brian Rhodes

IPVMU Certified | 03/02/18 06:10pm

The bad blood is not new here, either. Earlier this year, settlement was made where ADT sued Ring. The case claimed Ring used intellectual property for their new intrusion system that ADT had paid $36 million to develop.

Tom Sharples

03/02/18 06:36pm

Try getting paid on time by ADT. I no longer sell anything to them but back when I did I'd always add a 10% surcharge to cover the hassle of collecting.

Undisclosed #3

IPVMU Certified | In reply to Tom Sharples | 03/02/18 07:22pm

I'd always add a 10% surcharge to cover the hassle of collecting.

+10/0, Net never

;)

Undisclosed Manufacturer #4

03/05/18 02:14pm

I may be wrong (it's happened before) but doesn't ADT have some astronomical figure of employee turnover? Like 70% every 60 days or something crazy like that (again - could be waaaay off). Constantly replacing, training and sending out new reps has got to be expensive.

I would imagine that a large portion of their "marketing" is spent on the continuous revolving door of door-knocking employees they employ. IF that is the case, then it would make sense that a product with lower cost, higher dependability and ease of purchase without a contract would make the ringer a smart purchase.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #4 | 03/05/18 02:49pm

#4, turnover has certainly been a problem. Even googling for ADT employee turnover has many results over the years. I checked ADT's S1 filing from last year and while they make general references to reducing turnover as a priority, I did not find any stats. It's a good question / point. I just don't know enough to shed any light on how big an issue it remains (or is not).

Undisclosed Integrator #6

In reply to Undisclosed Manufacturer #4 | 03/05/18 05:41pm

The company that I left had over 60% turn-over in their sales force in 2017 and they are 300 or so employees in a half dozen states. ADT is who they wanna' be despite all their verbiage about being a great place to work and customers know better...

Undisclosed

03/05/18 02:41pm

This all seems to be about residential stuff. What about the larger customers... Not the same thing, is it?

John Honovich

IPVM | In reply to Undisclosed | 03/05/18 02:45pm

Rodney, this (Amazon/Ring) is definitely residential related. As for larger customers, that's what we were recently discussing with ADT's 'merger' with ASG.

It's a little head spinning since historically all the alarm guys lived and died by RMR and now they are trying to diversify into system integration, a historically extremely low RMR business.

Undisclosed Manufacturer #5

03/05/18 02:59pm

ADT seems to have upped their marketing campaign, lately...free camera, Family Locator service, etc. Just wonder how uninformed the average buyer is, or are the DIY set savvy enough to check out on-line comments?

Sean Nelson

Nelly's Security
03/05/18 03:07pm

Ring doesn't use central station monitoring does it?