Amazon to acquire home mesh router startup Eero to bolster smart home lineup

Amazon's deal with Eero still awaits all of the standard regulatory approval.


Amazon is trying its best to flesh out its smart home lineup and in attempting to do so, the company has announced its interest in buying home mesh router startup, Eero.

The acquisition could help bolster Amazon's plans of launching more smart home devices in 2019, since Eero, does happen to be one of the first companies to offer mesh WiFi to consumers in the US. The startup may just be a five-year-old entity but happens to be one of Google Wifi's main competitors when it comes to mesh WiFi.

Amazon to acquire home mesh router startup Eero to bolster smart home lineup

An Eero home WiFi beacon. Image: Eero

For the uninitiated, Mesh WiFi systems consist of the main router that connects directly to your modem, and a series of satellite modules, or nodes, placed around your house for full WiFi coverage. However, unlike traditional WiFi routers, they are all part of a single wireless network and share the same SSID and password. The benefits of a smart mesh system include better coverage and reliability.

The move also comes at a good time for Eero, which, in spite of being a success amongst investors, has been struggling financially. As per a report by TechCrunch, the company, roughly a year ago, laid off a fifth of its workforce due to financial woes.

Amazon in its press release did not reveal a sum for the acquisition given that the takeover is subject to customary closing conditions. The press release also suggests that Eero won't be losing its brand name for the time being. However, needless to say, that the company's future products will be limited to Amazon's Alexa ecosystem.

Certain users may also disapprove of the fact that the acquisition will put more user data into the hands of one of the largest online retailers in the world.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .