Google is planning to acquire the Fitbit INC (U.S. Wearable device maker)
Google always love to dominate the tech world. So, they often try to buy some exciting companies to hold it’s domination. As part of it, Google has made a special offer for Fitbit to acquire the company.
According to Reuters, Google Owners Alphabet Inc has made a special offer to the U.S. wearable device maker Fitbit Inc to acquire it.
Google plans to enter into the crowded market for fitness trackers and smartwatches by acquiring the popular Fitbit Inc.
Although Google has recently joined hands with other tech gains such as Apple Inc & Samsung Electronics to create a smartphone. They never have in talks to produce any wearable offerings. So, we can think its a good move to acquire Fitbit.
Even though there is no official update about the deal or the negotiations, we can know that Google has made a bid for Fitbit from the Reuters site.
The Reuters sources said that they couldn’t disclose deal details or so because it is confidential. Thus, the exact price the Google owner Alphabet INC has offered for Fitbit is unknown.
Google and Fitbit both declined to comment on this issue. Presently Fitbit shares have risen upto 27% on the news; this is giving the company $1.4 billion for market capitalization. Google’s Alphabet shares also have been increased to 2% to $1,293.
If this deal happens, then Fitbit could dominate the share of the fitness tracking industry. Presently China’s Huawei Technologies and Xiaomi Corp are offering cheaper offerings, but if this collaborating happens, there will be a massive demand for the Fitbit watches regardless of price.
The Fitbit’s official fitness trackers are used to monitor users’ daily steps, check calories burned, and how much distance they have traveled and so on. These trackers also measure floors climbed, heart rate, sleep duration, and more.
Fitbit Inc has previously helped the wearable devices craze by partnering with health insurers. Its also making tuck-in acquisitions in the health care market to diversify its revenue stream.
Some of the analysts say that most of its revenue now lies in the health data. In July, Fitbit cut its 2019 revenue forecast by blaming disappointing sales of its newly launched product with the cheapest rate.
The new watch is priced at $160, which is $40 lesser than its full version. This device can track workouts, heart rate, but it lacks a feature that is the ability to store music directly. That’s the main drawback of this device, that’s why it has seen lesser sales.
Later on, Fitbit has signed a deal with Singapore government and has done lots of work with other aspects. But, i think if it collaborates with Google’s Alphabet Inc, it can go higher in terms of innovation and sales.
This is not the first deal Google is offering to the wearable tech. Previously it has conversations with Fossil Group Inc. Fossil has said it would sell its property related to smartwatch technology for $40 Million under development to Google in January. But, Google plans for these assets are unclear. So it hadn’t worked quite well for them. That’s why Google is planning to acquire Fitbit. Let’s see how far this conversation goes.