Google is buying Fitbit for $2.1 Billion to expand its Wearable department. Although Google makes Pixel devices, it hasn’t made it in headway into its wearables.
Fitbit brought for $2.1 Billion!
The news came after Reuters reported Google’s talks with Fitbit to acquire them. Google will pay $7.35 per share for Fitbit in an all-cash deal that values the company at $2.1 billion.
The company’s price has fluctuated as it worked to adjust to a changing market and fumbled on some of its more recent launches. In 2015, the company hit an all-time high of $51.90 per share and hit its lowest in August 2019, which brought its price down to $2 per share.
“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,” Fitbit co-founder and CEO James Park said in a press release.
Fitbit also mentioned that the company will still take privacy for health and fitness data seriously, noting that Fitbit health and wellness data will not be used for Google ads.
The acquisition of Fitbit makes sense, Google is excellent at its software skills, and comprehensive developer support could help Fitbit’s smartwatches be a bit smarter and support more functions.
While Fitbit is good at its hardware department, giving Google a much stronger foundation to build on for future Android-integrated wearables devices. And the company’s strong focus on fitness tracking could naturally be integrated into Google’s existing Google Fit apps.
With this recent acquisition, Google has brought in the big guns to defeat the domination of Apple’s wearable known as Apple Watch.