“Watchmaker Fossil Group Inc. has agreed to acquire startup Misfit Inc., a maker of wearable fitness trackers, for $260 million,” Yuliya Chernova reports for The Wall Street Journal. “Richardson, Texas-based Fossil Group has its Fossil and Skagen brands, and it licenses a host of others, including Michael Kors, Diesel and DKNY.”
“‘If you don’t have a brand it is hard to be legit in this space,’ said Sonny Vu, chief executive and co-founder of Misfit. He will become president and chief technology officer of connected devices for Fossil Group after the transaction closes, which Fossil expects before the end of the year,” Chernova reports. “Being a stand-alone fitness tracking startup has gotten harder in the past year, as competition has intensified. Companies such as Xiaomi released cheap variants, at the same time Apple Inc. entered the fray with its Watch.”
“Publicly traded Fossil expects to incorporate Misfit’s technology into products that look like traditional watches, rather than rubber fitness trackers, as soon as next year. It plans to continue producing Misfit’s own products, as well, said Greg McKelvey, chief strategy officer and digital officer at Fossil Group,” Chernova reports. “The startup employs about 220 in Burlingame, Calif.; Ho Chi Minh City; Shenzhen; and Beijing. Fossil will give employment offers to all of Misfit’s employees, Mr. McKelvey said. ”
Read more in the full article here.
MacDailyNews Take: Fossil remains aptly-named, just $260 million poorer.
SEE ALSO:
Marc Newson: Apple Watch a similar game-changer to iPhone – November 10, 2015
Apple has already sold more than $1.7 billion worth of Apple Watches – October 29, 2015
Strategy Analytics: Apple Watch sells 4.5 million units in Q315, takes 74% global smartwatch market share – October 28, 2015
Apple Watch users are abandoning traditional watches – September 15, 2015
Over 1 million Apple Watches already sold in China – September 3, 2015
Apple Watch already dominates smart-wearables market, says IDC – August 28, 2015
IDC estimates Apple sold 3.6 million Apple Watch units in Q2 – August 27, 2015
Best Buy CEO: Apple Watch demand is ‘so strong’ that we’re expanding sales to all 1,050 stores – August 25, 2015
Swiss watch exports decline most since 2009 – August 20, 2015
Apple Watch takes 88% of total smartwatch revenue – August 14, 2015
Fossil already under pressure from revolutionary Apple Watch – August 12, 2015
Salesforce showcases 20 enterprise apps for revolutionary Apple Watch – August 12, 2015
Apple Watch kills a entire industry in three months – August 12, 2015
U.S. wristwatch sales post biggest drop in seven years after Apple Watch debut – August 7, 2015
Apple Watch dominates smartwatches with 75% market share – July 28, 2015
Juniper Research: Apple is world’s #1 smartwatch maker – July 23, 2015
Canalys: Apple ships 4.2 million Apple Watches in Q2 to become world’s top wearables vendor – July 21, 2015
Apple Watch satisfaction is unprecedented at 97%; beats original iPhone and iPad – July 20, 2015
Non-techies love their Apple Watches even more than tech users – July 20, 2015
Apple Watch is Apple’s most successful product debut ever – June 1, 2015
Analyst sees Apple Watch threat to Fossil ‘becoming real’ – April 20, 2015
Apple Watch Edition is poised to disrupt the classic Swiss watch – April 16, 2015
The Apple Watch’s beautiful face is also its fatal flaw – says Fossil exec – March 6, 2015
Enjoy it while it lasts, Fossil – Apple Watch looms – November 13, 2014
Barclays: Apple Watch could crush companies like Fossil – September 16, 2014
Apple Watch, the world’s first real smart watch, will be a massive hit – September 9, 2014
[Thanks to MacDailyNews Reader “Atticus Fonzworth” for the heads up.]
It is indeed difficult to see how a company named “Misfit”, bought by a company named “Fossil”, can be PR spun into a threat to Apple.
“Fossil” now seems appropriately named.
Misfit + Fossil = Missil.
Not bad, but still a miss.
Funny enough I only recently noticed tv ads for ‘Misfit’ and in all honesty having never heard of them i thought it was some sort of spoof and was busily trying to work out who the real company was having a bit of fun at others expense. Until reading this article i still wasn’t sure what was going on but certainly concluded that no way would I be buying a device from a company with that name. You have to be very big and fashionable to be able to carry off such attempted irony in the market place, otherwise you just tend to think they are a tin pot company from China who doesn’t realise how things play out when you translate into English, like so many examples before them.
Two odd names for both wearable fashion companies.
If it Misfires they could both be turned to stone
A dental health company, Flossit.
Never heard of Misfit but I’m familiar with Fossil, have owned a few of their products and I like them.
They have a vintage style to most of their stuff and the quality is good.
2-3 years from now – “Hey, look at the dummy wearing a dumb watch.”
– Sorry. I meant to post this under the ‘Fossil plunges 33%…’ story.