Google Will Buy Fitbit in a Hefty Deal of $2.1 Billion

Google Will Buy Fitbit in a Hefty Deal of $2.1 Billion

Google Will Buy Fitbit in a Hefty Deal of $2.1 Billion

Google has entered into a definitive agreement to acquire Fitbit, a leading wearables brand, for $7.35 per share in cash, valuing the company at a fully diluted equity value of approximately $2.1 billion.

Fitbit theoretically offers another platform for Google's Assistant voice-activated software, which competes with Apple's Siri, Amazon's Alexa and Microsoft's Cortana.

Google stated Friday that it sees an opportunity to introduce its wearable gadgets and invest more in digital health.

US antitrust regulators have little reason to oppose Alphabet's plans to buy Fitbit, but that does not mean that USA officials, backed by a bevy of anti-Google lawmakers, will not give the proposed purchase extra scrutiny. The innovation business' propensity for discharging least suitable items doesn't work in an industry where confusions can truly turn into an incomprehensibly important issue.

That's sure to help inform Google's core advertising business, even though the company said it will not sell ads as a direct result of the Fitbit deal.

After making waves with its fitness trackers, Fitbit chose to enter the smartwatch fray in 2017 with the Ionic.

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Google's parent company Alphabet has revealed that it will be purchasing popular wearables giant and smartwatch maker Fitbit, in a deal that will be closed soon. Google could also combine the company with smartwatch technology it bought from Fossil Group earlier this year to help it design new products.

Google's decision to buy the struggling company stems from its need to take advantage of the massive bio data it has secured in the past.

Extra than something else, what Google desires to learn from Fitbit is that Build on OS doesn't can possess to be every thing to each person. Interestingly, Fitbit comes in at number 2 both last year and this year, with 24.1% and 28.3% respectively.

In addition to Pebble, through Fitbit, Google has also acquired talent and technology from Vector, Coin, Fitstar and Twine Health. Fitbit has stated that the same privacy policy still applies for users and that means you are still in control of your data. Google has also been working with the WHO and its affiliates to better devise apps and features to provide the most realistic and authentic guidance to its users to attain optimum health conditions.

The Verge notes that Google is aware of user concerns which is why they tried to address them in the blog post announcing the sale. With sales stalling with global competition from the ultra-cheap Xiaomi Mi Band tracker and the dominant Apple Watch smartwatch, Fitbit's sales have plateaued. That, in turn, led to the launch of several smartwatches too, notably from Samsung as well as a host of Chinese companies though none could make a mark as say, the Android smartphones. The launch of Apple's (NASDAQ:AAPL) smartwatch diverted customers at the higher end of the market, while cheaper alternatives from the likes of Garmin Ltd (NASDAQ:GRMN) undercut at the lower end.

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