Google is Shopping for Fitbit for $2.1 Billion
The rumors surfaced a couple of days in the past, and it seems they have been true: Google is shopping for Fitbit for $2.1 billion in money. The 2 firms simply introduced the deal at the moment.
Fitbit shall be folded into Google, and which means it will likely be making a recent era of wearables that may run Put on OS and be branded as Made By Google units.
“Through the years, Google has made progress with companions on this area with Put on OS and Google Match, however we see a chance to take a position much more in Put on OS, in addition to introduce Made by Google wearable units into the market,” mentioned Rick Osterloh, Google’s senior vp of units and providers, in a weblog put up asserting the deal. “Fitbit has been a real pioneer within the business and has created participating merchandise, experiences, and a vibrant neighborhood of customers. ”
Once we first heard the search large could be sizing up the health wearable model, we questioned why would Google purchase Fitbit? This can be a clear sign that Google is severe about stepping into the wearable market on the aspect and pushing its Put on OS software program onto extra units.
Issues have been instantly raised by some in regards to the privateness of non-public information and what would possibly occur to Fitbit customers’ information if the deal was to go forward. Osterloh was fast to handle that subject, promising that, “Much like our different merchandise, with wearables, we shall be clear in regards to the information we gather and why. We’ll by no means promote private info to anybody. Fitbit well being and wellness information won’t be used for Google adverts. And we’ll give Fitbit customers the selection to assessment, transfer, or delete their information.”
Contemplating that Fitbit has been struggling to transition from health trackers to smartwatches, which is the sector of wearables that’s really rising, the actual fact it’s open to acquisition isn’t a shock, but it surely does look as if Google has paid above market worth. Fitbit’s market cap is round $1.6 billion, so paying $2.1 billion reveals its dedication to get the deal finished.
“Greater than 12 years in the past, we set an audacious firm imaginative and prescient — to make everybody on the earth more healthy,” mentioned James Park, co-founder and CEO of Fitbit, in a press release. “Google is a perfect accomplice to advance our mission. With Google’s sources and international platform, Fitbit will be capable of speed up innovation within the wearables class, scale quicker, and make well being much more accessible to everybody. I couldn’t be extra excited for what lies forward.”
Google additionally paid $40 million earlier this 12 months for some unspecified smartwatch expertise from Fossil, so wearables are clearly an space the place it wish to do higher. Put on OS has had restricted success, and with not one of the prime 5 smartwatch makers utilizing Google’s platform, it could want a rethink. Whether or not this acquisition means Google will put out health trackers in addition to smartwatches stays to be seen, however what’s clear is that Google needs to broaden past software program and put out some wearable units of its personal.
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