The reports about Nest CEO Tony Fadell's departure mainly centered on a demanding culture. But The Verge's Nilay Patel offers another theory.
The impetus, according to several sources close to Nest, was the increased pressure on Nest to deliver profitable results as a standalone unit inside the new Alphabet operating structure, instead of being safely ensconced inside Google and given room to grow.
That wasn't what Nest's founder's anticipated when the sold to Google.
Whereas Google was content to float the company, under Alphabet Nest was tightly constrained and asked to demonstrate a level of financial discipline at odds with what the founders had expected when they sold to Google.