When Google announced its $1.9 billion acquisition of Nest Labs earlier this year, many investors were hoping to get a slice of the pie from Google’s growing hardware business.
Now, with Nest’s business in shambles, it looks like Google’s $1-billion acquisition of the internet-connected thermostat maker could be a one-time deal, too.
The company has now confirmed that it plans to sell off its thermostats business, which it acquired in 2014.
Nest CEO Tony Fadell said in a blog post today that he would leave the company’s hardware business after the deal closes.
Nest Labs has been struggling since its acquisition by Google.
Its stock has fallen by as much as 40 percent in the past year.
But with Google’s acquisition, it now has the opportunity to turn its hardware business around.
Nest is expected to announce its plans to restructure its hardware operations in the near future.