Amazon acquired home security camera manufacturer Blink for 90 million USD
Amazon acquired home security camera manufacturer Blink for 90 million USD. The deal was concluded without much noise at the end of last year, as the technological giant wanted to improve its expertise in chip manufacturing. According to analysts from the industry, Amazon turned its focus on developing energy-efficient chips, which were produced the startup Blink.
Acquisition and price highlight that Amazon aims to do more than selling another popular camera. The online retailer is targeting Blink’s chips because they can reduce production costs and extend the life of other devices, including Amazon’s Cloud Cam, and expand the family from its Echo columns.
Amazon looks at its devices as a key to stepping up its customer relationship. Cloud Cam and Echo currently require direct charging to work. Blink, which claims that its cameras can last up to two years with a pair of AA lithium batteries, can change all that.
Amazon refused to comment on the terms of the acquisition or strategy.
So far, the deal has not paid much attention. The camera manufacturer has announced the agreement with Amazon with some details on December 21 in a blog post. Analysts looked at Blink as part of Amazon Key’s retailer strategy. Amazon sees opportunities in the security cameras market when smart home technology gains more popularity.
But Blink is not just working in the camera business. Its little-known owner Immedia Semiconductors was created in Massachusetts as part of the chip industry. Chief Executive Peter Benson and the two co-founders came from Sand Video, which is making chips since 2000. In 2004, the owners sold Sand Video to Broadcom and remain in it as directors. The group of managers left in 2008 to create Immedia Semiconductors, which aims to make video chips and later targets chip makers as their potential customers.
Daniel Grunberg, one of the co-founders who left Immedia in 2016, says the plan has failed. The computer manufacturers did not want to pay 1 USD per chip when there were cheaper options on the market. So Immedia is heading in another direction.
“If we make our own camera, we do not have to sell one hundred million chips”, commented Daniel Grunberg.
The home security camera manufacturer Blink, which was launched on the market in 2016, does not require cable replenishment as many competing products, making it easier to position it.