The acquisition moves Amazon further into the smart home security market and follows the company's purchase of smart home security startup Blink late last year. Observers also speculate that it further opens the door for Amazon to be able to deliver packages inside of shoppers' homes.
Amazon has internally been developing and selling some home security products, such as its Cloud Cam and Amazon Key service - the latter a camera paired with a smart lock that lets Amazon unlock a door to allow deliveries inside a home. There are also reports it has also been working on a smart lock with camera.
However the popular Ring security products are seen as integrating well with Amazon's existing products and services - for example, Ring devices can currently integrate with Amazon's voice-controlled assistant Alexa - and offering an easier path into the home security market for the online retail giant. In fact, Amazon had previously invested in Ring through its Alexa Fund, which offers venture capital to companies working on voice technology.
According to Reuters, the cost of the deal is estimated to be over $1 billion. The takeover would be Amazon's second largest acquisition after its purchase of Whole Foods last year for $13.7 billion.
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