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.
Brian Sozzi for Yahoo Finance:
The deal by the deep-pocketed Google for Fitbit makes a degree of sense for the tech beast. For starters, Google obtains sensitive data on how human beings live their lives and their overall health journey… Data is the lifeblood of a tech animal such as Google — and over time paying $2.1 billion for Fitbit’s innermost precious commodity may prove to be a steal.
Fitbit’s plastic fitness trackers and smartwatches are a mere afterthought here, let’s be real. The wearable space is effectively owned by Apple despite what Fitbit tracker loyalists think.
Fitbit’s stock fell slightly below $3 in late August of this year. Its market cap has gone from $6.4 billion in December 2015, according to Yahoo Finance Premium data to Google’s offer price of $2.1 billion. That’s awful.
The company’s profit margins have been shredded due to the greater popularity of the Apple Watch.
MacDailyNews Take: How long until Our Lady of Transitory Endeavor loses interest as Fitbit sales continue to decline as the already dominant Apple Watch’s sales accelerate?