Alphabet buys Fitbit for $2.1 billion

Fitbit, Inc. today announced that it has entered into a definitive agreement to be acquired by Google LLC for $7.35 per share in cash, valuing the company at a fully diluted equity value of approximately $2.1 billion.

“More than 12 years ago, we set an audacious company vision – to make everyone in the world healthier. Today, I’m incredibly 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,” said James Park, co-founder and CEO of Fitbit, in a statement. “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.”

“Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users,” said Rick Osterloh, Senior Vice President, Devices & Services at Google, in a statement. “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.”

Fitbit will continue to remain platform-agnostic across both Android and iOS.

The transaction is expected to close in 2020, subject to customary closing conditions, including approval by Fitbit’s stockholders and regulatory approvals.

Source: Fitbit, Inc.

MacDailyNews Take: Apple Watch roadkill.

Fitbit could not compete with Apple Watch and Apple’s myriad Health projects then and they won’t be able to compete now.

Health information is very private data. Google does privacy very poorly and, now, by association, so does Fitbit.

8 Comments

  1. Reminds me of Microsoft’s Nokia acquisition in 2013 in an attempt to buy their way into the pocket computer market, without doing the preliminary work of building a support ecosystem.

    That deal ended up being a 7.6 billion write-off.

    1. Microsoft was just dumb…. Nokia’s market share at the time was only 5% for a good reason; their products were not good enough vs the competition. Having Nokia’s phone business never would have worked. A too little too late scenario.

      I think Google will have more success IF they keep the Fitbit name. They just need to call it the Google Fitbit and they will already have their foot in the door with consumers as they already know the Fitbit name. Knowing google, they will try to put the Pixel name in somehow. Pixel Wear. Pixel Watch.

  2. With Google’s track record of the “see what sticks” method, I fear this endeavor will end if not successful in a few years time. I think they should keep the Fitbit name. Maybe Google Fitbit. That brand is already well known and will help establish this new hardware when it is released.

    I have an Apple Watch and don’t plan on switching but competition is never a bad thing.

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