There is never a dearth of news from Google, is there? Google’s parent company Alphabet is creating a ripple with potential acquisition of FitBit, a leading wearable brand. FitBit is known for transforming the wearable technology and its recent failing too.
Spokesperson of both companies declined to comment. However, the shares of FitBit rose by 27%.
Earlier, FitBit became the first brand to popularize wearable technology with quality software, great UI, and access to various health-monitoring features. However, the company has also witnessed a reversal of fortunes in recent times. Chinese manufacturers like Huawei, and Xioami has lapped up market shares for wearable with cheaper devices. Now, Google wants to try its hands at wearable technology or does it really?
Moreover, Google seems to be enticed by the vast health data available at FitBit’s disposal too. The company recently tied up with the Singapore government. It promised to provide fitness trackers and services for over 1 million Singaporean users.
Furthermore, it seems like Google might in for a luck. Fitbit’s revenue forecast for 2019 witnessed a major plunge on the back of disappointing sales. Its new offering Versa Lite failed to capture the anticipated buzz.
A Much Anticipated Deal
And, Google heads are unlikely to skip a beat while listening to this news. Alphabet had earlier purchased smart watch technology from Fossil Group Inc. While plans for these were not clear, Google purchased its assets for $40 million.
There may be a silver lining waiting for the sales of FiBit ahead. The company is planning to add music offerings, payment options, and Amazon’s assistant Alexa to its Versa Lite watch. However, its next earnings soon to be published will provide a much clearer idea.
Fitbit would not be the first deal that Google would be carrying out in the wearables space. Fossil Group Inc (FOSL.O) said in January it would sell its intellectual property related to smartwatch technology under development to Google for $40 million. Google’s plans for these assets are not clear. Earlier, news of FitBit approaching investment bank Qatalyst Partners about sale possibilities were making rounds.