Home Business & Finance Google Acquires Fitbit for $2.1 Billion

Google Acquires Fitbit for $2.1 Billion

Google Acquires Fitbit for $2.1 Billion

Although Google has tried to establish itself in the wearables market over last couple of years, the company’s attempts haven’t really yielded significant results. Rumors over last couple of days have suggested that Google is looking to acquire Fitbit in an attempt to reignite its Wear OS ecosystem. Earlier today, both companies announced that Google has agreed to buy Fitbit for $2.1 billion.

According to the press release, the deal will see Fitbit merged with Google rather than working as another subsidiary under Google’s parent company, Alphabet. Despite its popularity, Fitbit has been facing strong competitions in the market as Apple has been dominating the market with its offerings for quite a while. On the other hand, Google has been struggling to gain market share as Wear OS devices come significantly short compared to similar products from competitors.

While it’ll be interesting to see how Google benefits from the acquisition, Fitbit has revealed that it will continue to uphold its users’ privacy. Moreover, the company debunked the claims that its users’ health related data will be used to Google ads going forward.

On the other hand, Google claimed that the latest acquisition will bring the best of our smartwatch platforms and health applications together.” Considering Pixel owners are eagerly waiting for Pixel smartwatch, it’ll be interesting to see how Google uses Fitbit’s technology to bring its products to customers. For instance, Google acquired part of HTC’s smartphone business few months earlier in an attempt to improve on its Pixel smartphones.

At the moment, the acquisition will be a gradual one as the deal will be completed sometime later next year.

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