- Amazon announced Tuesday it was buying smart doorbell maker Ring.
- The deal is worth a reported $1 billion and could help the company jump an important hurdle in its Amazon Key delivery business.
- But it could also deal a painful blow to ADT, VC Jason Calacanis said, if and when the combined company puts out smart alarm products.
An Amazon-Ring tie-up is bad news for alarm system company ADT, VC Jason Calacanis said Wednesday.
But it could also deal a painful blow to ADT, Calacanis said, if and when the combined company puts out smart alarm products.
"They're going to take the cameras and the alarms and put it together and the big loser in this will be ADT," he told CNBC's "Squawk Alley."
ADT charges thousands of dollars for installation and a steep monthly fee for continued service, Calacanis said.
"People absolutely hate that company, and now there's new products that are coming out where there's nothing down, $20, $30 a month for the service to let the alarm company know, and you can install it yourself," he said.
ADT shares fell nearly 7 percent Wednesday. The company was not immediately available for comment.