Google Buys Fitbit For $2.1Billion To Rival Apple On Wearables
Joseph AdeyinkaPublished on
The Fitbit stock upsurge after Google unveiled it’s purchasing the wearable device maker for $2.1billion in order to rival Apple.
On 1st November, Fitbit disclosed it had been offered about $7.35 per share in cash, equating to a premium of 19% or more on the stock’s closing price two days ago.
Fitbit was among the first companies to flourish in the wearable market
And now, Google has entered into a $2.1 billion deal with Fitbit
After the sale, Fitbit stock rose 17% after already earning more than 40% since it had earlier been reported by Reuters that Google made an offer to the company on October 28th.
Known for developing wearable smartwatches used in tracking biometrics that includes, sleeping quality, heart rates and so on, Fitball has undoubtedly made a name for itself.
Its wearables, which also comes with a calendar and clock can also pair with one’s phone to take down messages. While the deal between Google and Fitbit is scheduled for conclusion in 2020, Google has proven it’s willing to pay a premium in a bid to expand and explore in the wearable arena.
After the sale, Fitbit stock rose 17% after already earning more than 40% since it had earlier been reported by Reuters that Google made an offer to the company on October 28th
With the ongoing antitrust findings into Google by governments, the deal will also be looked into by regulators from the US and Europe.
It’s expected that Google will look to capitalize on a healthy, smartwatch market, which has continually witnessed significant growth. While this will be the company’s first foray into wearables, it had earlier struggled to gain ground in a space dominated by Apple.
This marks Google’s first foray into the wearable hardware market despite owning its own operating system for smartwatches named Wear OS
Currently, the smartwatch shipments have jumped to an estimated 48% year-over-year in the first quarter of 2019. Accordingly, Google will certainly have stiff competition as Apple has taken more than half of the smartwatch market. But regardless, we wish Google a sweet ride into the wearables world.