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Technology Fitbit stock surges on report that Google-parent Alphabet may buy company

18:40  28 october  2019
18:40  28 october  2019 Source:   cnet.com

Exclusive: Fitbit considers whether it should explore a sale - sources

  Exclusive: Fitbit considers whether it should explore a sale - sources Exclusive: Fitbit considers whether it should explore a sale - sourcesFitbit has held discussions with investment bank Qatalyst Partners about whether it should engage with potential acquirers, the sources said.

Fitbit shares surged Monday on a report that Google 's parent company Alphabet is looking into buying the wearable company . Unlike the Apple Watch, which is iPhone-only, Fitbit 's products work on both iOS and Google 's Android platform. Google has tried in the past to develop its own wearable

Google 's parent company Alphabet (GOOG, GOOGL) is acquiring health tracking company The news follows an earlier report that the two firms were set for a tie up. Fitbit CEO James Park unveils Fitbit 's second Fitbit would, naturally, benefit from the additional resources at Alphabet 's disposal.

Fitbit shares surged Monday as a new report claimed that Google-parent Alphabet was looking into buying the wearable company.

a close up of a cell phone: Google-parent Alphabet may be eyeing Fitbit, makers of the Versa 2 smartwatch. Sarah Tew/CNET© Provided by CBS Interactive Inc. Google-parent Alphabet may be eyeing Fitbit, makers of the Versa 2 smartwatch. Sarah Tew/CNET

According to the report from Reuters, Alphabet has "made an offer" to buy Fitbit, though the report did not disclose terms. After briefly being halted, shares of Fitbit resumed trading late Monday morning, with the company rising nearly 28% to $5.51 early Monday afternoon.

Fitbit, of course, is the maker of popular wearables and fitness trackers including the recent Versa 2 smartwatch. Unlike the Apple Watch, which is iPhone-only, Fitbit's products work on both iOS and Android and provide a way for Android users to be able to connect to a wearable.

Alphabet is reportedly interested in buying Fitbit

  Alphabet is reportedly interested in buying Fitbit Fitbit is apparently quite serious about exploring a sale. Reuterssources said Alphabet has "made an offer" to buy Fitbit for an as yet undetermined amount. The insiders warned there was no guarantee the talks would lead to a deal, but the indication of interest is still huge by itself. We've reached out to Alphabet and Fitbit for comment, although they declined to comment to Reuters. If Alphabet did snap up Fitbit, it could dramatically change the landscape for smartwatches. In spite of challenges, Fitbit is still one of the largest smartwatch makers on the planet -- this would quickly consolidate the market.

Fitbit stock soared in Monday trading after Reuters reported that Google - parent Alphabet has made an offer to acquire the company . Representatives for both Google and Fitbit said they don’t comment on rumors or speculation. If Alphabet did acquire Fitbit , the deal would provide a major

Alphabet (GOOGL), the parent company of Google , is said to have offered to acquire the fitness tracker maker, according to a report from Reuters, which cited anonymous sources familiar with the matter. The report did not include a price. Fitbit 's stock spiked more than 30% at one point in

a close up of a cell phone© Sarah Tew/CNET

Google has tried in the past to develop its own wearable platform called WearOS to rival Apple's smartwatch, but early efforts have failed to catch on with consumers despite attracting a host of high profile partners such as Tag Heuer, Fossil, Michael Kors and Movado.

In IDC's recent wearables report, the research firm found that Fitbit had a market share of 10.1% during the second quarter of 2019, shipping 3.5 million devices.

Google and Fitbit did not immediately respond to a request for comment. Alphabet is set to report earnings after the bell closes on Monday afternoon.

Fitbit buy is Google's latest step into gadgetry .
Google's deal to buy Fitbit will help it compete with health tech companies. But the deal also helps Google build out its own hardware line. Google has historically been a late bloomer when it comes to hardware. The company's own phone did not debut until 2016 and does not sell well compared to rivals. But Fitbit has a well-known brand that will lend Google credibility as it creates its own wearable. Google has been through a similar merger before, with smart home company Nest. Google recently rebranded its home products under the Nest name.

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