Google Buys Fitbit For $2.1 Billion
Google have announced that they’ve bought wearable smart device company Fitbit for a massive $2.1 billion.
The SVP of devices and services at Google, Rick Osterloh, said that the Fitbit purchase was “an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market.”
The news was no surprise after reports of a potential purchase had been circulating for a few days.
Google is one of the last tech companies to have moved into the smart watch market, falling way behind the likes of Apple and Samsung.
The purchase of Fitbit could be an opportunity for the California-based company to compete with the Apple Watch.
Fitbit was founded in 2007 by James Park and Eric Friedman, building products to help track your activity, exercise, food, weight and sleep.
After the purchase was agreed, Fitbit confirmed in a statement that it won’t sell personal information and that their health and wellness data will not be used in Google adverts.
The deal is Google’s fifth largest acquisition ever, with Motorola ($12.5 billion), Nest ($3.2 billion), Adsense ($3.1 billion), and Looker ($2.6 billion) all costing more.
The purchase is clearly a good deal for both parties involved, with both parties aiming to “make health even more accessible to everyone”.
Rick Osterloh of Google spoke of how excited the company were to working with the health tracking brand:
Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users,
We’re looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world.
The transaction is expected to close in 2020, as long as there’s no issues with closing conditions and regulatory approvals.
Only time will tell how long it will take for Google to be releasing their very own line of smart watches with Fitbit’s technology.
The Apple Watch may have a real competitor in the real future!
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