Through its acquisition of Nest and the launch of a new smart speaker in Japan, Google demonstrates the logic of strategic M&A beyond profitability alone. The challenges of generating results from CVC and evaluating them are also discussed.
Google acquired Nest, a manufacturer of consumer IoT devices, more than 10 years ago and has expanded its business platform in the consumer IoT sector. In 2026, it is also strengthening its consumer device strategy by launching a new Gemini-powered smart speaker in Japan.
This article points to the importance of strategic design, investment agreements and performance evaluation when companies use CVC. Japanese companies’ CVC activities are said to be moving from the launch phase toward generating results, with the challenge being how to evaluate those results and explain them to management.
Through interviews with experts from KPMG FAS, the article discusses how designing an investment model centered on generating results from CVC, as well as ensuring the appropriateness of investment agreements, can contribute to improving corporate value.