Google May Reunite With Nest as It Takes on Amazon

Google is considering folding home-automation unit Nest Labs into its hardware team, according to people familiar with the talks, reversing a major element of Google’s split two years ago into various businesses under holding company Alphabet Inc.

Nest was a pioneer in internet-connected home devices such as thermostats and home security cameras. But Amazon.com Inc. recently launched a home-security device that competes with Nest.

Making Nest and its 1,000 employees part of Google would mark a retrenchment of Alphabet’s strategy to separate its core Google internet business from a number of other units, such as its research lab and life-sciences firm. When Alphabet was formed in August 2015, Nest was the model “other bet,” with its own headquarters, hiring process and perks—even its own branded bikes for employees.

At the time, CEO Larry Page said in a public letter that “the whole point is that Alphabet companies should have independence and develop their own brands.”