Amazon's acquisition of Ring will have big implications for its in-home delivery offering, according to one Wall Street firm.
The e-commerce giant confirmed Tuesday it is buying smart doorbell maker Ring. Financial details of the acquisition were not disclosed, but Reuters reported it could be worth more than $1 billion.
"We believe the product/strategic rationale for the near-to-medium term would be to integrate Ring.com's products with Amazon Key to decrease friction on order delivery by allowing users to let couriers inside their homes," Credit Suisse analyst Stephen Ju wrote in a note to clients Tuesday.
In October, Amazon introduced Key, an in-home offering that allows delivery people to drop off packages inside customer's homes through keyless entry technology.
The company could add Amazon Key functionality into Ring video doorbell products to offer a more streamlined hardware and software package versus its current offering.
Another Wall Street analyst is optimistic on what the acquisition means for Amazon's smart home ambitions.
"The Ring acquisition, while carrying a high price tag, is a smart strategic acquisition in our opinion for Bezos & Co. as the company has a clear window of opportunity to become the entrenched leader in the nascent smart home world," GBH Insights' Daniel Ives wrote Wednesday.