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COMING UP:Share Opener Variant 3

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Transcript

00:00:01
>> Amazon's move this week to buy Ring, a smart doorbell maker, sent investors of home security firm ADT rushing for the door. ADT, whose shares just started trading on the New York Stock Exchange last month, plummeted 13% in two days following Amazon's acquisition news. Reuters' Jeffrey Dastin.>> ADT's stock drop reflects this widespread fear on Wall Street that Amazon will disrupt any industry that it enters.
00:00:29
Amazon is now in the process of disrupting Hollywood, in the process of disrupting logistics, in the process of disrupting groceries.>> ADT has over seven million customers and makes surveillance cameras and burglary alarms, and is the largest player in monitoring residential security in North America. But one analyst points out that Amazon's roughly 100 million prime membership gives the e-commerce giant a strong base to compete from.
00:00:55
>> Home security is a logical extension of Amazon's deal to buy Ring because Ring not only shows you if there is a burglar trying to get into your house, but it also has lights that go on if there's movement outside your house. Its whole pitch is neighborhood security.
00:01:14
So, even if Amazon buys Ring, primarily to allow a secure way for delivery personnel to drop packages on the inside of your home. It's only logical that, in trying to provide customer benefits through it's Prime program, will not only allow in home delivery, but it will add an alarm system, and Alexa will be will be able to tell you if your home is secure, and it gradually will move more into ADT space.
00:01:37
>> Ring isn't Amazon's first forray into home security, late last year it bought the maker of Blink home security cameras for about $90 million. A source familiar with the Ring deal told Reuters, Amazon valued the company at more than $1 billion, making it one of Amazon's most expensive takeovers after its deal to buy Whole Foods last year, signalling it's serious about home security.