Google To Buy Fitbit For $2.1 Billion

Posted: Nov 1 2019, 7:59pm CDT | by , in Technology News

 

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Google to buy Fitbit for $2.1 billion

Google is on its way to making its own smartwatches.

Google has agreed to buy fitness watch maker Fitbit in a $2.1 billion deal that paves the way for the tech giant to create its own fitness watch and smartwatch hardware.

Fitbit announced the transaction in a press release, confirming reports earlier in the week.

In a statement, Fitbit co-founder and CEO James Park said “Google is an ideal partner to advance our mission. With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone. I could not be more excited for what lies ahead.”

Park added that Fitbit now supports more than 28 million active users worldwide.

Fitbit was the pioneer in the line of fitness trackers and in wearables in general. Back then, only Fitbit was known in the category of fitness watches. Now, the company has been consistently rolling out new products as it faces intense competition from other fitness watchmakers, as well as smartwatch makers who have also integrated fitness features into their products.

For Google, the deal would provide the company with a platform that could help it produce its own smartwatch and fitness watch hardware. Currently, Google offers its operating system, Wear OS, to other makers of watches such as Louis Vuitton, Montblanc, TAG Heuer, Michael Kors and other watch manufacturers like Fossil, Kate Spade, Tommy Hilfiger, Casio and more.

“Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users … We're looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world,” Google’s Senior Vice President for Devices and Services Rick Osterloh said in a statement.

Fitbit’s stock soared 17% following the announcement. Back when Reuters reported about a potential deal, Fitbit’s shares surged as much as 30.86%

The deal is expected to close in 2020, subject to regulatory approvals and the approval of Fitbit’s shareholders.

This story may contain affiliate links.

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<a href="/latest_stories/all/all/81" rel="author">Mandy Jean</a>
Mandy covers the latest news in Tech and Business.

 

 

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