BREAKING NEWS: Google Tipped To Buy Fitbit, Shares Suspended
As the wearable tech market booms shares in Fitbit were last night suspended with Google tipped to buy the business.
Reuters claims that a price has been agreed and an announcement is set to be made shortly. At this stage the purchase price is not known however Fitbit’s share price surged by 19% before being suspended overnight.
Fitbit who have excelled with their trackers have struggled to compete up against Apple and Samsung in the smart watch market especially as Apple is now offering a cheap Apple Watch.
The move would enable Google to produce its own smartwatches wrapped around a new Android OS for wearables.
Google has not commented.
A spokeswoman for Fitbit said it “does not comment on rumours or speculation”.
It emerged in September that Fitbit, currently valued by the markets at around $2.0bn was up for sale.
Fitbit, which in its latest quarterly earnings posted a loss of $68.5m, is looking precarious according to the BBC as a standalone entity since bigger firms have gained a strong footing in wearable technology.
“A key tipping point is likely to have been Apple’s decision to price its Series 3 Apple Watch at $199/£199,” said Leo Gebbie, from the consultancy CCS Insight.
Fitbit had made it known earlier this year that it was interested in being acquired as they burnt through cash.
“That will have put immense pressure on Fitbit’s own products, which are already feeling the challenge from low-cost rivals.
In an attempt to diversify its income, Fitbit has expanded into other areas – including monitoring users’ breathing during sleep, and diabetes management.
For Google the deal, if confirmed, would represent a renewed effort to develop its Wear OS platform.
“Although Google has been lukewarm in its commitment to wearables recently, this indicates it is serious about the segment and could provide a strong boost to its ambitions,” Mr Gebbie added.
CCS Insight predicted 142 million wearable devices would be sold worldwide this year, at a value of $17.1bn.