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Amazon Pays $1 Billion for Startup That Shark Tank Passed On

The tech was originally pitched on a 2013 episode of Shark Tank.

Amazon has agreed to purchase video doorbell maker Ring. Ring produces Wi-Fi powered doorbells which let homeowners see who is at the door remotely. Sources told Reuters the deal is valued at over £1 billion, although Amazon has not officially revealed details.

The technology had been pitched before by Ring’s founder and CEO, Jamie Siminoff, on a 2013 episode of Shark Tank, according to CNBC. At the time, his business was called Doorbot, and every investor but Kevin O’Leary passed. O’Leary made an offer but Siminoff did not accept.

Amazon Pays $1 Billion for Startup That Shark Tank Passed On

The Ring Video Doorbell Elite.

Four years later and Siminoff’s business is now valued at £1 billion, even landing Richard Branson as an investor, before the Amazon deal was made. Siminoff, an avid inventor, originally created the idea for the device because he couldn’t hear the doorbell from his garage, where his workspace was set up. He wanted a device which would send a notification to his phone when someone rang the door, and since he couldn’t find a product like that, he created one himself.

His wife encouraged him to think bigger, suggesting the ability to see who was at the front door would add an increased sense of security to those inside the home.

Exit Theatre Mode

Purchasing Ring could work nicely in tandem with the Amazon Key service which launched last year. Baird Equity Research analyst, Colin Sebastian, said Amazon adopting smart security devices could be “an important factor in driving user adoption” for its grocery delivery initiatives. For more on Amazon, check out the list of best selling games and gadgets on Amazon, or read up on the Amazon Key service launched last year.

Brian Barnett is a freelance writer for IGN, and part shark.

You can follow and chat with him (he’s super friendly) on Twitter @Ribnax.

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