Does Amazon Acquiring Eero Matter? Yes, Yes It Does

If you’re not already paying attention to Amazon (Nasdaq: AMZN), you should be. Not only is Amazon one of the most major e-commerce companies on the market (bringing in $72.38 billion in its fourth quarter in 2018), the company is also now making its way into the Wi-Fi business.

Amazon announced earlier this week it is set to buy the Wi-Fi networking company Eero.

Never heard of Eero? Well, it manufactures Wi-Fi networking devices, more specifically, mesh Wi-Fi. This is a system of multiple router devices that you would put all over your house or office to provide more coverage. Each device works with one another off of one single primary router. Basically, they’re Wi-Fi extenders that boost the signal in an area.

Google already has something similar with its Google Wi-Fi, so it seems fitting that Amazon would go after the same thing.

What does this mean for Amazon though? The company has a few options. It can own Eero and let it run as it normally does. Despite layoffs in 2018, the company has a pretty healthy track record.

Amazon could integrate Eero into its own products. The e-commerce company already has devices that rely on an internet connection (Amazon Echo and Fire TV). So, this partnership seems like a natural fit to help with boosting the internet connection the devices rely on.

Eero also offers cybersecurity which would be a good match for Amazon’s devices to provide more protection and safety for its users.

There has been concern already over Amazon collecting data from its users, especially those who use Amazon’s Alexa services. Now, by adding Eero to the team, many more are worried over what Amazon could now do. Although Eero states that privacy is something they take seriously and never tracked customers’ internet activity, and they ensure that policy will not change, customers still question this commitment to privacy.

Amazon worked its way to the top, being one of (and at one point making it to the top) the most valuable companies on the market. By making moves with their voice assistant devices, introducing their own streaming services, and buying out a company that lets you watch your front door from anywhere, all of these moves have pushed Amazon to be a company to watch out for.

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