If you want to win in the product sector, you want to be on the side of the giants. Creating hardware takes time and money, the sort of money that is usually found in the pockets of tech giants. The circumstances surrounding Eero’s sale to Amazon speaks to how exceedingly difficult it is to compete in the smart home market. Meanwhile, the Eero execs who stay to help Amazon wage its war for smart home domination will take home around $30 million. And those who did exercise options, investing their financial faith in the company, have lost money.Īmazon plans to offer satellite-powered internet It typically would have cost around $3 for employees to exercise their stock, meaning they would actually lose money if they tried to cash out.įormer and current Eero employees who chose not to exercise those options are now empty-handed.
Investors took major hits, and the Amazon acquisition rendered Eero stock worthless: $0.03 per share, down from a common stock high of $3.54 in July 2017. Everyone else, however, didn’t fare quite so well. Eero executives brought home multi-million dollar bonuses and eight-figure salary increases. This story is about investors losing tens of millions of dollars and dozens of employees left with meaningless stock.Īccording to confidential documents viewed by Mashable, Amazon acquired Eero for $97 million.
When Amazon announced a deal to acquire Eero, the maker of a groundbreaking WiFi system, it sounded like a classic Silicon Valley success story: a promising startup is acquired by the biggest bidder in the land, and everyone rolls around in cash.
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