Amazon announced the acquisition of Ring on Wednesday, a video doorbell and home security camera created by American entrepreneur Jamie Siminoff, whose idea was rejected back in 2013 at the reality show Shark Tank.
The purchase comes in line with Amazon’s Alexa of keeping “a connected home” and to reduce delivery problems involving package theft. But it also points out they are ready to compete with Google’s Nest video doorbell, as video doorbells are really popular in the US, UK and across Europe.
The purchase hasn’t been made official yet, but an Amazon spokesperson told CNBC: “Ring’s home security products and services have delighted customers since day one. We’re excited to work with this talented team.”
Ring was born under the idea that burglars tend to ring the bell before breaking in a house. Siminoff created a video doorbell which connects to your smartphone and allows you to see who is out the door through your mobile device.
At the time, the ‘sharks’ at the reality show were not impressed by Siminoff’s invention and he was rejected by all of them, except by Kevin O’leary who, although wasn’t too excited by the product, he offered Siminoff a $700,000 loan.
But the offer came with some clauses behind it — O’Leary was going to keep a 7 percent royalty on all future sales.
Siminoff decided to decline the offer and he walked away from the show with nothing.
“It’s that moment when I say you’re dead to me, because you don’t want to take my offer,” O’Leary told him back in 2013.
The CEO of Ring was smart enough to wait for his time. Although, Amazon hasn’t disclosed the official number, Siminoff is now expected to get over $1 billion for Ring.
The deal marks Amazon’s second largest acquisition after the Whole Foods Market one.
Ring employs more than 1,500 in their offices in the UK and Amsterdam. In January they settled their legal battle with the alarm system ADT.
The Ring video doorbell will start selling at $179 with four doorbells, four security camera-lights and a floodlight.