Google (NASDAQ:GOOG) might be looking to acquire Dropcam, the connected camera start-up that's been gaining traction. Dropcam offers cloud-based Wi-Fi video monitoring to users. The device itself costs $150 to $200, while its Cloud Recording service costs $100 to $300 per year, which allows users to store and view up to 30 days worth of recordings. Getting financial backing from a tech heavyweight could allow Dropcam to continue growing even more.

Even Apple (NASDAQ:AAPL) was named as a potential suitor, although it makes more sense for Google to cut the check. Dropcam would be a perfect complement to Nest, which Google acquired earlier this year. In fact, many have said that Dropcam is doing for surveillance cameras what Nest did for thermostats. Google is clearly interested in growing its hardware presence in the smart home, in which case Dropcam could fit quite nicely.

In this segment of Tech Teardown, Erin Kennedy discusses Google and Dropcam with Evan Niu, CFA, our tech and telecom bureau chief.

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Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. Evan Niu, CFA has the following options: long January 2015 $460 calls on Apple and short January 2015 $480 calls on Apple. The Motley Fool recommends Apple and Google (C shares). The Motley Fool owns shares of Apple and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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