Amazon Billion+ Dollar Acquisition - Ring

Author: John Honovich, Published on Feb 27, 2018

The world's largest online retailer, Amazon, is now on a fast track to become the Western world's largest residential video surveillance manufacturer. After Amazon bought wireless video surveillance specialist Blink in December 2017, Amazon has now bought Ring (most well known for their video doorbells and Shaq commercials) for over $1 billion, in their second most expensive acquisition ever.

Related: Ring Pro IPVM Test, Ring Floodlight Cam IPVM Test, Ring Solar Stick Up Camera IPVM Test.

Revenue Estimate $200+ Million

IPVM estimates Ring's 2017 revenue to be $200+ million, based on Ring's previous public 2015 revenue statement of $100+ million and the strong growth rate in video doorbells / residential video surveillance in the past few years.

A year ago, Ring raised $109 million and had been evaluating further investment when they made this deal with Amazon.

Comparison With Arlo

The other big name in residential video surveillance making news recently is Netgear's Arlo, another very fast growing offering. Arlo is planning an IPO and is expecting a valuation of 2x that of Ring. Arlo, on the product side, is focused on wire-free video surveillance and is a direct competitor against Amazon's Blink.

Everyone Competing Against Amazon

However, increasingly every residential video surveillance manufacturer will be competing with Amazon. With Blink and Ring combined, they have leading products in wirefree video surveillance as well as doorbells. Moreover, Ring also has security cameras and a security system, but those are newer and less proven than Ring's doorbells.

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Traditional Kits vs Amazon

What Amazon does not own is a provider of traditional 4 / 8 / 16 camera kits. However, that is less important strategically and going forward than wire-free and doorbells because residences value the convenience of having not to run new cabling, something that can be achieved with doorbell and wire-free cameras. Indeed, the traditional kits are challenged by the growth in the two areas where Amazon has now acquired.

Bad for The Chinese

The Chinese manufacturers have been working hard and spending money trying to break into the Western residential video surveillance market, e.g., Hikvision's Ezviz and Dahua's recent purchase of Lorex from FLIR.

However, given Amazon's already massive size and continued focus on growth, the Chinese manufacturers are going to be at a distinct disadvantage. While Amazon is likely to continue to let Ezviz and other Chinese brands fight for super low cost / low margin business, it is hard to imagine that Amazon will not favor in their marketing and positioning the two high-end product offerings they now own.

Ring Fits With Amazon Key / More?

The most obvious application where Ring fits is with Amazon Key, the new service that lets delivery people put packages inside one's house. Ring's doorbells are likely to be integrated and perhaps software upgraded to fit with this service, which helps solve the 'porch pirate', package theft issue.

How much more Amazon does with Blink and Ring is unclear now but it is fairly easy to imagine them packaging those two and other Amazon devices as 'end to end solution' for residential video surveillance and more that would be hard for most conventional video surveillance manufacturers to match.

Vote / Poll

Fairness / Anti-Trust Concerns

There are certainly fairness issues raised. Amazon is fundamentally a re-seller / distributor but now one who owns 2 of the fastest growing residential video surveillance products in the world. How do they treat their other vendors fairly given this position?

Now, owning 2 residential video surveillance manufacturers alone will not cause any anti-trust issues. However, Amazon overall, in the past year, has faced increasing criticism of anti-trust / anti-competitiveness behavior, e.g.:

That noted, if anything is likely to occur, nothing is likely to be done soon.

Ironically, the CEO of Ring just 6 months ago observed the power and danger of Amazon:

Now, at least, Ring's CEO is getting the benefits. Every other residential manufacturer is more likely to get the radiation.

7 reports cite this report:

Bad Move: ADT Markets Rival Amazon on Aug 08, 2018
Amazon may be lining up ADT as its next victim but ADT is happy to promote Amazon. Amazon has made major moves recently, including acquiring...
Simplisafe Acquired At $1 Billion Valuation on Jun 29, 2018
Simplisafe, the competitor alarm monitoring companies historically most love to hate, has been acquired by a mega private equity firm for a $1...
Amazon Enters Home Security Services on Apr 26, 2018
Move over ADT? It is certainly what investors have feared for ADT, especially since Amazon acquired Ring. [Update: We spoke with Amazon and have...
DMP Adds Ring Video Doorbell Integration on Apr 24, 2018
Video doorbells have become one of the hottest items for security systems. After several years with no doorbell, DMP has announced integration with...
Dahua Global Launch LeChange on Mar 20, 2018
Dahua is getting into the consumer video surveillance market globally, with "LeChange", an offering long available inside of China is now being...
ADT Hammered Again, Loses Another Billion In Market Cap on Mar 16, 2018
ADT's CEO told investors that, 'in baseball terms', ADT was batting 5 for 5. But investors told ADT's CEO, 'in baseball terms', that he was...
ADT: "Hate That Company" Loses Billion On Amazon Ring Deal 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...
Comments (46) : PRO Members only. Login. or Join.

Related Reports on Acquisition

Arecont Acquisition By Costar on Jul 11, 2018
Arecont Vision acquisition by Costar Technologies has been approved by the court, concluding the bankruptcy process triggered by Arecont's...
Eastern and SavvyTech Merge, Form ENS, Targets ADI on Jul 09, 2018
ADI, ENS is coming for you. Or, at least, they hope. Two US distributors, NY based EasternCCTV and California based SavvyTech have merged, to...
New Top Bidder, Arecont Goes To Auction on Jul 05, 2018
$10 million cash will not be enough to buy Arecont. Though Arecont signed a purchase agreement with a turnaround specialist, a rival video...
Simplisafe Acquired At $1 Billion Valuation on Jun 29, 2018
Simplisafe, the competitor alarm monitoring companies historically most love to hate, has been acquired by a mega private equity firm for a $1...
Allegion Acquires Isonas on Jun 29, 2018
Isonas failed to 'revolutionize' access control as they regularly claimed. Now, nearly 20 years after their founding, they are being acquired by...
Pelco Is For Sale on Jun 27, 2018
Pelco is for sale, being shopped by an investment bank, IPVM has confirmed from multiple sources. The company, acquired by Schneider Electric in...
Buy Arecont: Top Bid $10 Million Cash on May 22, 2018
Last year, Arecont had a deal for a purchase price of $170 million (see Failed Arecont China Acquisition). This year, Arecont has a deal for a...
Canon Acquires Briefcam, Now Owns Briefcam, Milestone and Axis on May 09, 2018
Canon already owns two of the biggest names in video surveillance, Axis (acquired in 2015) and Milestone (acquired in 2014). Now, Canon...
Nortek Acquires IntelliVision on May 08, 2018
One of the largest intrusion manufacturers, Nortek, has acquired the self-proclaimed 'Leader in AI-Based Video Analytics Software',...
Anixter Acquires 'PSIM Platform' Inner Range - "Heart of Our Technology Differentiation" on Apr 30, 2018
Anixter Security has made a bold move, acquiring what it calls a PSIM platform as part of a $150 million deal, with Anixter's CEO Bob...

Most Recent Industry Reports

2Gig Gun Lock / Motion Detector Tested on Aug 17, 2018
Safer guns for families and an opportunity for security dealers to sell more services? That is the aim of Nortek's 2GIG 'Gun Motion Detector'...
Video Analytics Integration Guide on Aug 16, 2018
Video analytics is hot again (at least conceptually) but integrating video analytics with VMSes can be challenging. This is especially significant...
Hikvision IP Camera Critical Vulnerability 2018 Disclosed on Aug 16, 2018
The same day that the US government passed a prohibition on Hikvision cameras, Hikvision disclosed a critical vulnerability for its IP...
ISS VMS / Video Analytics Company Profile on Aug 16, 2018
Who is ISS? In the past few months, they had one of the craziest ISC West promo items in years. Then, they hired industry veteran and ex-Dahua...
Chinese OEM Avycon Gets ADI Push on Aug 15, 2018
Who is Avycon? An American company? A Korean company? A couple of guys relabelling Chinese products? The latter is the best explanation. While...
Backboxes for Video Surveillance Tutorial on Aug 15, 2018
Backboxes are a necessity in surveillance, whether for managing cable whips, recessing cameras, adding wireless radios. But it can be confusing to...
Genetec Stratocast / Comcast 'Motion Insights' Examined on Aug 15, 2018
Comcast recently announced "SmartOffice Motion Insights", an extension to their Genetec OEMed cloud video service (covered by IPVM here). This...
SimpliSafe Violating California, Florida, and Texas Licensing Laws on Aug 14, 2018
IPVM has verified that DIY security system provider SimpliSafe, founded in 2006 and acquired in June of 2018 at a billion dollar valuation, is...
Ban of Dahua and Hikvision Is Now US Gov Law on Aug 13, 2018
The US President has signed the 2019 NDAA into law, banning the use of Dahua and Hikvision (and their OEMs) for the US government, for US...
Cut Milestone Licensing Costs 80% By Using Hikvision and Dahua NVRs (Tested) on Aug 13, 2018
Enterprise VMS licensing can be quite expensive, with $200 or more per channel common, meaning a 100 camera system can cost $20,000 in VMS...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact