ACQUIRE - The Impact of Amazon's purchase of RING for More Than US$1B

Amazon Continues to Invest in the Last Mile (Yard) of Customer Access

The Amazon purchase of Ring could cost the company as much as US$1.8B. However, virtually all analysts and observers find it to be a good strategic and tactical move for Amazon. Past InfoStream articles have shown that Amazon wishes (needs) to own the path to the consumer to continue and expand the client ecosystem it has developed. 

In late December, the ecommerce giant announced the purchase of Blink to enhance the Amazon Key service and devices. Earlier this year Amazon announced it would move to disrupt Fedex and UPS with services for the 'last mile' of home and business delivery. With Amazon Key, Amazon Logistics, Amazon Flex and Fulfillment by Amazon (FBA) it seems Amazon is well on the way to accomplish this goal. 

The reader should not overlook the fact that integrating Ring with Amazon Home services and devices like Amazon Echo, ensures the company is also poised to disrupt the huge field of Home Security.

The one aspect of this purchase that analysts don't seem to understand is the price tag. Perhaps they are not pricing into this deal the competitive advantage and cost of time and resources to own and control this last 'yard' of the path to the customer. The one big winner in this transaction aside from the investors who supplied early stage capital to Ring will be the customer.

Here are the important story links:

The original Reuters article on Wednesday, February 27

Quartz Article and Videos of Shark Tank's rejection of Jamie Siminoffs Big Idea - Smart Doorbells (4'56")

CNBC Video of Kevin O'Leary on Why He Won't Cry Over Spilt Milk (3'44") 

CNBC Video and Article - the Impact of the Ring Deal on Security Companies like ADT (4'43")