Most people not only know what Amazon offers, but actually use their services or online marketplace on a regular basis. With over 12 million items in stock, Amazon has essentially everything anyone could ever need.
Amazon sells an incredible amount of Ring products, so many that you might be thinking: Does Amazon own Ring?
Amazon does own Ring LLC, an innovative smart home device company which focuses on home security. Amazon bought Ring in 2018 for $839 million from its former owner, Jamie Siminioff. Amazon bought Ring to increase their sales and make its way into the home security sector.
In this article, we will discuss the ins and outs of Amazon’s purchase of Ring, and whether or not Ring was a good buy for Amazon. So keep reading; everything you want to know is right here.
Amazon currently owns Ring and it has been a subsidiary of the giant conglomorate since 2018. Currently, Ring has no other owners other than Amazon, making Ring an Amazon company through and through.
When Ring was founded in 2013 by Jamie Siminoff, it was a small company with only $364,000 to its name. Originally called Doorbot, Siminoff took the company on the popular American television show Shark Tank and valued the company at $7 million.
Although he got an offer from an investor, Siminoff decided to decline and keep control of the company, which was certainly one of the best decisions he ever made.
Through rebranding, investments, and acquiring Shaq as a celebrity spokesperson, Siminoff increased the value of Doorbot, and by 2018, the company was valued at an incredible $1.2 billion.
Did Amazon Always Own Ring?
Amazon saw the potential in Doorbot and decided to buy the now large and successful company in 2018. While Amazon has certainly not always owned Ring, the company has taken the surveillance technology and truly made the business what it is today.
Amazon knew that Ring would be an incredible success, and were excited to be able to offer their customers not only the Ring doorbell, but also Ring Cameras, Ring Alarms, and much more with their Alexa technology, the Ring app, and a monthly subscription plan.
Although Amazon prides itself on being a consumer-driver company, there is no doubt that Ring has proven to be extremely profitable for the company as well.
Amazon purchased Ring in 2018 for $839 million from Jamie Siminoff, which was their first move into home security systems.
Amazon has purchased dozens of companies over the years in order to have their foot in literally every pool. Buying startup companies with good ideas and making their products available on their online marketplace for an affordable price point is one of the main reasons why Amazon is so incredibly profitable and successful.
Since the purchase, Ring has become a household name, and reports state that millions of homes around the country and the world are now using Amazon’s Ring products to protect their families and their homes.
As we have mentioned, Amazon is known for making brilliant purchases of smaller companies with good ideas. The idea is that Amazon wants to own a private label or corporation that sells every single product on earth so they can have everything a person might ever need.
Amazon specifically bought Ring in order to be able to provide a home surveillance option to its customers with an affordable price tag, but of course, it wasn’t all that altruistic. Amazon also bought Ring to make money, and by offering a Ring subscription service, and millions of unit sales, Amazon has greatly increased its annual profits.
Amazon owns Ring, which offers video surveillance through doorbells and security cameras around the home.
Google does not own Ring, but they are certainly directly competing with it by producing their own home surveillance products. Google Nest offers a variety of smart home equipment to keep your family and your home safe, and when customers are deciding which product is best for purchase, Ring and Nest are usually the top two competitors.
Of course, it’s no surprise that two of the biggest companies in the world, Amazon and Google, saw the advantage to owning or creating smart home security products, because as it turns out, they are both making quite a lot of money from these systems.
There is no doubt that Ring was a good buy for Amazon. Even though there is no specific report that states how much money Amazon is earning from Ring purchases and subscriptions every year, experts estimate that it is in the tens of millions.
Amazon is known for its intelligent and pragmatic acquisitions; the company uses immense data collection and analytics before making any of its major purchases. Although most of us can see now what a great buy Ring was for Amazon, it’s likely that Amazon knew from the very beginning how much they would make from Ring.
Amazon is the proud owner of Ring LLC, originally called Doorbot, which created audio visual doorbells for home surveillance. Amazon took Ring and added their Alexa services, as well as monthly Ring subscriptions to increase their profits while offering their customers an affordable way to keep their homes safe.
Welcome to CompanyScouts! I am Jake, the founder of CompanyScouts. I hold an Msc in Economics and Business Administration. With a deep interest in the consumer segment, I strive to help people get to know their favorite companies even better.