Romain Dillet, TechCrunch:
Google will keep the Nest group intact inside the company. The new division will still work on hardware devices, but not necessarily thermostats or smoke detectors. In fact, Google would like [Tony] Fadell to work on gadgets that make more sense for the company. Will it be a phone or a tablet? It’s unclear for now.
While Nest first became popular with its thermostats, Google didn’t buy the company for these devices. First and foremost, the company wanted to snatch the great product team.
Completely unsurprising, but it makes sense: Nest simply has a better product design team than Motorola, and Google only needs one of them.