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My immediate reaction on reading it was "Whoever they were talking to wasn't serious about buying them but was serious about killing them." There's a reason why

My immediate reaction on reading it was "Whoever they were talking to wasn't serious about buying them but was serious about killing them." There's a reason why a lot of acquisition deals include a "breakup fee" like the one that allowed T-Mobile to buy a bunch of spectrum. I also can't imagine a $700 lock unless I'm desperately trying to keep my collection of Juiceros safe, but I'm not really their target market. Likely even consumers weren't their target market, builders of very high-end homes were because they were selling image and style as much as functionality.

kevinburke 9y ago
Your reaction does not reflect the reality of the situation
- fencepost 9y ago
  Obviously you're a lot closer to the situation than some shlub reading a Medium post from the guy who shafted everyone working for him. It's entirely possible that a major player in locks or home automation was going to invest a big chunk of change or outright purchase the company. It's also entirely possible that with no earnest money or termination penalty in the negotiations stringing Otto along until it folded (and its IP might become available at fire sale prices) probably cost that potential suitor very little - a few tens of thousands of dollars in salaried employee time and travel, but that's about it. Depending on who it was, that company might also have a much better grasp on the potential market size for a high-tech wireless smart lock - be it at $700 or something significantly lower. I will note that a simple search for "Bluetooth door lock" turns up a wide variety of listings with prices ranging from $90-260, and even if some have different feature sets right now anything truly innovative could likely be copied and added to the firmware on many of them. Even the concept of a door with a sensor that picks up the presence of something carried and unlocks is far from novel - you can find that in hundreds of thousands of office buildings around the world.

kevinburke 9y ago

Your reaction does not reflect the reality of the situation

fencepost 9y ago
Obviously you're a lot closer to the situation than some shlub reading a Medium post from the guy who shafted everyone working for him. It's entirely possible that a major player in locks or home automation was going to invest a big chunk of change or outright purchase the company. It's also entirely possible that with no earnest money or termination penalty in the negotiations stringing Otto along until it folded (and its IP might become available at fire sale prices) probably cost that potential suitor very little - a few tens of thousands of dollars in salaried employee time and travel, but that's about it. Depending on who it was, that company might also have a much better grasp on the potential market size for a high-tech wireless smart lock - be it at $700 or something significantly lower. I will note that a simple search for "Bluetooth door lock" turns up a wide variety of listings with prices ranging from $90-260, and even if some have different feature sets right now anything truly innovative could likely be copied and added to the firmware on many of them. Even the concept of a door with a sensor that picks up the presence of something carried and unlocks is far from novel - you can find that in hundreds of thousands of office buildings around the world.