Alphabet has been inquiring about the eventual purchase of Fitbit for quite some time, but the latest reports reveal the parent of Google has submitted an official offer for the wearable company. The agency is saying there is no certainty this offer would lead to any deal and the price cannot be learned.
The acquisition of Fitbit could mean Google will finally have a team able to build a Pixel Watch that can compete in the wearable market. Currently, Google only provides the Wear OS to third parties and this could help it expand its hardware portfolio.
Once the news broke, Fitbit shares rose over 30%. The wearable company has seen investor interest dwindle, particularly after cutting is 2019 revenue forecast back in the summer. It is experiencing disappointing sales of its latest products Versa Lite that starts from $160/€160 and the Versa 2 with integrated Alexa.
Reuters reminded that back in January Google already acquired Fossil’s smartwatch-related intellectual property. The price was $40 million, but Google is yet to reveal what is it planning to do with it.