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Technology Google parent Alphabet agrees to buy Fitbit

15:45  01 november  2019
15:45  01 november  2019 Source:   cnet.com

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.

This Alphabet - Fitbit deal, if true, would make sense for both parties. Google has not yet put out any of its own wearables, despite Wear OS’ awkward place in the Fitbit has also shown its prowess in the smartwatch world, especially with it being so new to the market. The company has only released three

Google parent company Alphabet made an offer to acquire Fitbit , a source familiar with the matter told CNBC Monday. Buying Fitbit could be a play to make Google services a greater part of customers' lives and measure up to Apple in the health and fitness space.

Google parent company Alphabet agreed to purchase Fitbit, it announced Friday. It confimed a Monday report that Alphabet "made an offer" to buy the wearable company.

a black watch on a white background: Fitbit is the company behind the Versa 2 smartwatch. Angela Lang/CNET© Provided by CBS Interactive Inc. Fitbit is the company behind the Versa 2 smartwatch. Angela Lang/CNET

Fitbit is behind fitness trackers like the Versa 2 smartwatch and the Charge 3 band, which are compatible with both Apple'siOS and Google's Android operating systems (the Apple Watch is iOS-only).

a black watch on a white background: Fitbit is the company behind the Versa 2 smartwatch.© Angela Lang/CNET

Fitbit is the company behind the Versa 2 smartwatch.

Alphabet released a sluggish financial report Monday, with $40.49 billion in sales (exceeding analysts' $40.32 billion estimate) and earnings per share of $10.12 (below the expected $12.42 per share).

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

  Fitbit stock surges on report that Google-parent Alphabet may buy company Fitbit stock has jumped nearly 28% following a Reuters report that Google is preparing to buy the company.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.

Google may be looking to bolster its wearable tech, and has reportedly made a bid to buy fitness-tracking company Fitbit . According to a new report from Reuters, Google ’s parent company, Alphabet , has made an offer to acquire Fitbit . Further details about the deal have yet to be revealed.

While Google has joined other major technology companies such as Apple Inc and Samsung Electronics Co Ltd in developing smart phones, it has yet to develop any wearable offerings. There is no certainty that the negotiations between Google and Fitbit will lead to any deal, the sources said

We can expect to see Fitbit's third quarter earnings report on Nov. 6, the company said last month.

a screenshot of a video game remote control© Provided by CBS Interactive Inc.
Why Google could use Fitbit

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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