Google is acquiring Fitbit for $2.1 billion, diving into the universe of wearables to compete the rivals such as Apple. Fitbit mission is to empower and inspire you to live a healthier, more active life. They design products and experiences that fit seamlessly into your life so you can achieve your health and fitness goals, whatever they may be.
The manufacturer of wearable wellness trackers consented to an arrangement worth $7.35 a share in cash, it declared Friday. Fitbit shares closed Thursday at $6.18, a 43% expansion from Monday’s end cost, when Reuters reported that Google and the San Francisco organization were in securing talks. Fitbit stock closed Friday at $7.12, up 15%.
The acquisition will allow the Silicon Valley internet giant to invest more into Wear OS — formerly called Android Wear, an operating system found in other brands’ wearable devices — and bring Made by Google wearables into the market, said Rick Osterloh, Google senior vice president of devices and services, in a blog post. He called Fitbit “a true pioneer in the industry” and said Google wanted to “ work closely with Fitbit’s team of experts.“
According to the recent report, Fitbit has 1625 employees until June 29, 2019. Moreover, James Park (CEO of Fitbit)
“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.”
Fitbit Market Shares:
Established in 2007, became popular by the tracking of steps, calories consumed and Heart Rate measures, but that information is now also available in iPhone and Apple Watch. In 2019, Apple had 25.8% share of the overall industry, Xiaomi had 13.3%, Huawei 10%, Samsung 8.7% and Fitbit only 5.9%. In a similar period five years back, Fitbit’s share was 44.7%.
According to Nilesh Chandra (Data Expert), “This is a pure data play”.
“Google has shown themselves adept at making similar moves in the past on data (e.g. Waze) and also worth noting that they are behind both Apple and Samsung in wearables, so Fitbit makes sense for Google.”
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