Just days after it was reported that Google was close to buying Fitbit, Google and Fitbit today confirmed the purchase: Google will pay $7.35 per share for the wearables company in an all-cash deal that values Fitbit at $2.1 billion. Relatively speaking, this is a great landing for Fitbit . The company's price has fluctuated significantly as it worked to adjust to a changing market and fumbled on some of its more recent launches. In summer 2015, it hit an all-time high of $51.90, but this August it went as low as $2.81 after more than two years hovering below $7 -- a pattern that changed dramatically after the first reports of Google's interest began to surface in September. The match could ultimately prove beneficial for both parties.
Google has snapped up the Fitbit fitness tracker business in a $2.1bn (£1.6bn) deal that will enable the search giant to go toe-to-toe with Apple in the fast-growing smartwatch and wearables business. Google is paying cash for the San Francisco-based Fitbit, which was set up in 2007. It is paying $7.35 per share – a premium of more than 70% to the Fitbit share price before the shares were suspended earlier this week amid takeover speculation. The price, however, is a fraction of the company's value when it floated in 2015. The shares were initially priced at $20, and soared to more than $50 in the weeks following the initial public offer.
Fitbit, a pioneer in wearable fitness trackers, is being acquired by Google for $2.1 billion. Fitbit, a pioneer in wearable fitness trackers, is being acquired by Google for $2.1 billion. Google is purchasing Fitbit for $2.1 billion, a sign that the Internet company wants to make up ground in the crowded wearable-technology field. Alphabet-owned Google said Friday it would pay $7.35 per share for the San-Francisco-based Fitbit, a pioneer in the fitness tracking market. Google has been developing Wear OS, software used for smartwatches, since 2014, but has struggled to break into the wearable hardware, facing staunch competition from Apple, Samsung and others.
Fitbit has one of the most enviable caches of health data in existence. But the wearables pioneer needs money to stay competitive in the red-hot industry it helped spawn. It's pairing up with Google, one of the internet giants that already knows too much about us, in what looks like an inevitable win-win for both companies. I can't help feeling like Fitbit sold us out in the process of securing the investment it needs. Fitbit has built what is arguably one of the most usable and engaging fitness, health and wellness platforms, and it has more than 100 million wearables and 50 million registered users to show for it.
NEW YORK – Google, the company that helped make it fun to just sit around surfing the web, is jumping into the fitness-tracker business with both feet, buying Fitbit for about $2.1 billion. The deal could put Google in direct competition with Apple and Samsung in the highly competitive market for smartwatches and other wearable electronics. But it also raises questions about privacy and Google's dominance in the tech industry. The company's announcement Friday came with a promise that it won't sell ads using the intimate health data that Fitbit devices collect. Fitbit is a pioneer in wearable fitness technology, making a range of devices that have become pop-culture accessories, from basic trackers that count how many steps you take each day to smartwatches that display messages and notifications from phones.