I think a lot of people are too hung up on the light bulbs, and thus missing the point.
From the announcement:
“Intelligent lighting will form the backbone of intelligent buildings(and is already the #1 connected device category to voice assistant technologysuch as Amazon Alexa, Google Assistant, and Apple’s Siri).
LIFX is viewed as amarket leader in this space, second only to Philips. Initially, Buddy will befocused on helping LIFX expand production to fill the growing demand for LIFXlights around the world.
In time, Buddy will introduce LIFX to new commercialmarkets and consider the opportunity to deploy the Buddy Ohm solution viaexisting installations of LIFX lights in residential spaces.”
“Since 2012, LIFX has sold over 1.8 million units around the worldacross twelve primary lighting products.
Each of LIFX’s products are capable ofreporting their own energy consumption, with the future opportunity to also actas a sensing platform for environmental & localised comfort monitoring, andmore.
Certain models of LIFX lights contain other sensors and hardware that mayfacilitate control by Buddy Ohm of lights, appliances, air conditioning andother consumers of energy in an occupied space.”
Now reference P45 of the Investor Deck Presentation and we can see it's not just about lights:
"LIFX has a control and energy monitoring module. We can turn on a "Powered by LIFX" experience with many products and integrate it seamlessly with Buddy Ohm."
The way I read it, there’s nothing specifically “light-centric” about this deal. It's about much more than just light bulbs. The above excerpts tell us where this is going. When combined with LIFX’s cloud (for control), Buddy’s cloud(for energy consumption) and LIFX’s app – the LIFX control and energy monitoring module - used in conjunction with other powered appliances - can/will make any disconnected productconnected, self-reporting of their energy consumption, workwith Alexa, work with Google Home, work with Siri/Homekit and anything else.
That’s a significant technology - and valuable asset - for Buddy to own because it potentially provides any device - be it a kettle, fridge, television whatever - with Buddy Ohm sensing ability.
Seems to me that's a significant competitive advantage which provides access to a much bigger market.
As for the data, one way or another this will get sorted. Everything that is happening now and will continue to happen in ever-greater scale going into the future is about data - data production, data monitoring, data collection, data analysis and data monetisation.
That's why Amazon and Google and everyone else is doing it.
The LIFX acquisition is as much about the revenue from the exisiting lights franchise as it is about further developing the IP protected technology, and what they can do with it when combined with Buddy Platform.
That's why LIFX were keen to do the deal - because it positions the combined Buddy/LIFX entity in rapidly emerging markets with significant global reach on a scale that was previously unattainable.
IMO.
BUD Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
