Finally, the rumour which was hovering around is now official. The parent company of Google which is named as Alphabet is now all set to buy Fitbit. The news was officially confirmed after an announcement made on Friday where the tech company was head to head with the California based company, Apple in the fitness tracking space at a cost which is said to be in the vicinity of $2.1 billion. This decision by the tech giant can boost its hardware business. On the other hand, it may also increase the antitrust scrutiny potentially. Now as per the rumour, Alphabet which is the parent company of Google has given the formal offer of buying Fitbit. A report mentioned, “There is no certainty that the negotiations between Google as well as Fitbit will lead to any deal.” Earlier also the brand has released its heavily rumoured Pixel Watch through which we feel that the company was interested in the fitness hardware market. So this deal values of Fitbit at around $2.1 billion is going to close in the year 2020 which is subjected to Fitbit stockholder as well as regulatory approval. Having said that, it is really good news for the Fitbit fans. This is because Google might beat Apple Watch in this case which Fitbit has been struggling with as of now. One of the most interesting parts about this agreement is the means for Wear OS.
On the last Monday, the stock of Fitbit has surged more than 30% as per the news by seeing which Alphabet has approached to the brand hand had made an offer of acquiring the smartwatch make. As of the close of Monday, the market capitalization of Fitbit sat at $1.5 billion, up to $340 million from the previous day. On the announcement, Rick Osterioh, the hardware Chief of Google have said and explained how this acquisition will be helping Google advance its ambitions for Wear OS. He said, “ today we are announcing that Google has entered int definitive agreement to acquire Fitbit, a leading wearables brand.” He further said, “we believe technology is at its best when it can fade into the background, assisting you throughout your day whenever you need it. Wearable devices such as smartwatches and fitness trackers do just that you can easily see where your next meeting is with just a glance of an eye or monitor your daily activity right from your wrist.”
Since many years Google has made a lot of improvement along with partners in this space along with Wear OS as well as Google Fit. Having said that Google is now in a plan to invest even more in Wear OS and might even introduce wearable devices which are solely made by Google into the market. We all know that Fitbit has been the ruler in the wearable industry and the company has been engaged in creating products, experiences as well as a vibrant community of users. Google said to this, “by working closely with Fitbit’s team of expert and bringing together the best AI, software and hardware, we can help spur innovation in wearables and build products to benefit even more people around the world. Google also remains committed to Wear OS and our ecosystem partners and we plan to work closely with Fitbit to combine the best of our respective smartwatch and fitness tracker platforms.”
Apart from this, a new report suggests that Google is not the only company which was interested to buy the fitness wearable making company. James Park, Co-Founder and CEO of Fitbit said, “more than 12 years ago we set an audacious company vision to make everyone in the world healthier. Today I am incredibly proud of what we have achieved towards reaching the goal. We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier more active life. Google is an ideal partner to advance our mission. With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster and make health even more accessible to everyone. I could not be more excited for what lies ahead.” Buying Fitbit can help Google in extending its ambient computing strategy where it is aiming to be part of the lives of the users. Google has specifically given importance to its health as well as hardware ambitions with the arrival of various new products in the month of October which includes new Pixel 4 smartphone. Earlier Fitbit has struggled a lot because of the increasing popularity of Apple’s smartwatch. In July earnings it has revealed that the company has faced weaker than expected sales of the new lightweight watch. Now Google might offer stiff competition in the coming months.