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Author Topic: Google parent Alphabet buys Fitbit  (Read 8847 times)

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Google parent Alphabet buys Fitbit
« on: November 04, 2019, 07:32:14 AM »

Back in September, fitness tracker and smartwatch manufacturer Fitbit put itself up for sale. Immediately, one possible buyer surfaced at the top of everyone's list: Google. The rumors heated up earlier this week and today the deal became official. For $2.1 billion, Google parent Alphabet will purchase Fitbit in a transaction that will close next year. While the latter has had success with its fitness trackers, the company has been unable to repeat this success with its smartwatch line. Fitbit stock holders will receive $7.35 in cash for each share they own. After soaring 28% on Monday, the stock has risen an additional 15% today to $7.10.

Google says that the purchase of Fitbit creates an opportunity for it to invest more in Wear OS, which might be considered good news for those hoping to one day have a Pixel Watch adorn their wrist. In fact, in Google's own press release that it issued today, the company comes right out and states that the transaction could lead it to "introduce Made by Google wearable devices into the market." While that might not be the same as Motorola saying that we will flip for the new product it is unveiling on November 13th, it still sounds promising. Most believe that there is no Pixel Watch at this time because Google feels that Wear OS is not exactly ready for prime time and any further development that Google does with the software is welcome.


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