GOOGLE ACQUIRED FITBIT FOR $2.1 BILLION
It’s confirmed Google acquired Fitbit company after reports claim the internet and tech giant was close to buying the wearable company ‘Fitbit’, this was also confirmed as the Google stated on its website that it has officially entered into definitive agreement to acquire one of the leading wearable brand.
This will see Google pay $7.35 per share for the wearable company in an all-cash deal that will reflect Fitbit values. In summer 2015, Fitbit stock hit an all-time high of $15.90, but witnessed the opposite this year’s August as it went as low as $2.81 – this changed dramatically after the first reports of Google’s interest were figured out in September and with the confirmation of the deal, over time, it should appreciate.
Google on its website made it clear that it believes technology is at its best while reflecting on its need to assist individuals throughout the day via its products. Adding that, this is obtainable via wearable devices, such as fitness trackers and smartwatches that practically monitor your daily activity directly from your wrist.
Also, its evident Google’s hardware business is relatively young but has built a strong foundation of capabilities and products, such as the Pixel smartphones and Pixelbooks. On the other hand, Google has made progress with partners in the wearable space with Google Fit and Wear OS, but sees Fitbit as an opportunity to invest in Wear OS with the aim of introducing Made by Google wearable device into the market.
Before Google acquired Fitbit, the Android giant has viewed the wearable company Fitbit as a true pioneer in the industry that has created engaging products, experiences coupled with a community of vibrant users. This development will, therefore, bring close, Fitbit’s team of experts and the best AI, hardware, and software. While announcing the deal, Google device SVP ‘Rick Osterloh’ stated on his blog:
“Over the year, Google has made progress with partners in this space with Wear OS and Google Fit, but we see an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market. Fitbit has been a true pioneer in the industry and has created engaging products, experiences and a vibrant community of users. By working closely with Fitbit’s team of experts, and bringing together the best AI, software, and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world”.
Meanwhile, there are concerns over health data, and to reassure users it will not be using the information for advertising, the Executive stated: “We will never sell personal information to anyone, Fitbit health and wellness data will not be used for Google ads. And we will give Fitbit users the choice to review, move, or delete their data”.
In this space dominated by ‘Apple Watch’, Fitbit has also worked to be recognized as a serious health wearable figure, however, responding to this development, Fitbit CEO and co-founder ‘James Park’ stated.
“More than 12 years ago, we set an audacious company vision – to make everyone in the world healthier, today, I’m increasingly proud of what we’ve achieved towards reaching that goal. We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier, more active life. 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 over what lies ahead”.
With Google acquiring Fitbit, it’s obvious the company wants to compete with the likes of Apple in this space.
- So what’s your take on – Google acquired Fitbit?