Google buys Fitbit for $2.1 billion

nanoguy

TS Addict
Staff member

Recently, the rumor mill has been buzzing about Google's intention to acquire Fitbit as a strategic move to save the Wear OS ecosystem. Today, the two companies announced the deal, where Google agreed to pay $2.1 billion for the wearable maker. As a result, Fitbit's stock shot up almost 16 percent.

The deal will have Fitbit pooling its resources under Google as opposed to being another subsidiary for Alphabet. Google sought to fill a gap in its hardware lineup, which currently includes phones, tablets, clamshells, headphones and speakers. Fitbit has been facing strong competition in the smartwatch market, where Apple dominates with the Apple Watch.

Of course, this is likely to raise questions about user privacy. In a press release, Fitbit explained that Google was simply the "ideal partner to advance our mission," and that it intends to uphold its tradition of putting users in control of how their data is used. The company also explicitly ruled out the possibility that users' health and wellness information would be used for Google ads. On the other hand, it's likely that future versions of the Fitbit Versa will ship with Google Assistant instead of Amazon's Alexa.

Google says the Fitbit acquisition will "bring the best of our smartwatch platforms and health applications together." And while many of us are waiting for a Pixel smartwatch, it appears the fitness tracking magic will be shared with partners as well. After all, Google knows the only way Wear OS has a chance of competing with Watch OS is by forging partnerships that create a diverse range of products, while it focuses on creating aspirational "Made by Google" products for Google enthusiasts.

The Fitbit acquisition is expected to be a gradual one, while the two companies work out the regulatory and shareholder approvals. The deal will close sometime next year, but in the meantime Google is the subject of a broad antitrust probe that will peek into its search and advertising business, as well as its many acquisitions.

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umbala

TS Maniac
Not good news....Time to say good bye to Fitbit...!
I always laugh when I see comments like this one. Why do people feel the need to go straight to a hyperbolic ultimatum as soon as they see something they perceive as negative? Certain companies get away with murder, while others get comments like this one. Apple does all the exact same things that people overreact about when Google, Microsoft, or Amazon does it. Yes, yes, "Time to say good bye to Fitbit" and go straight to the Apple Store for an Apple Watch! You know, because that's your only choice. But now you're locked into an interconnected ecosystem with only one vendor. *roll eyes*
 

Uncle Al

TS Evangelist
I'd like to see them develop their own sugar monitoring device, especially one that does not rely on somebody else's device. Apple recently dumped their diabetic plans of having a self standing device and now all they are good for is the same kind of monitor that you can get with any of those kits. Just another big rip off of diabetics ....shame, shame, shame!
 

onestepforward

TS Booster
Certain companies get away with murder, while others get comments like this one. Apple does all the exact same things that people overreact about when Google, Microsoft, or Amazon does it.
I always laugh when I see things like this. Apple is working hard to improve privacy. Sure, they're not perfect at it, but they are trying to return to people the privacy that was stolen by companies such as Google and MS. On the other hand, Google, particularly, is doing all within its power to ensure that no-one is able to access any form of privacy. And in your World, those diametrically opposing philosophies are the same!? Just be honest and say that you are an Apple-hater and because of that you'll concoct any possible nonsense to denigrate the company.
 
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Malakai2k

TS Rookie
They're not bolstering their hardware business, they are bolstering their big data business. Information about who, when, where and how people excercise will be very valuable to advertisers and other businesses.
 

OutlawCecil

TS Evangelist
Should have bought the tech from Xiaomi for cheaper. The Mi Band 4 is amazing, and cheap. No reason to go with any other. Fitbit was already majorly overpriced.