According to a report by Reuters, search-engine giant Google’s parent company Alphabet is planning to buy wearables brand Fitbit. Alphabet has made an undisclosed offer to the fitness technology maker. People close to the situation say that there is no certainty that the deal between two companies will be finalised. Google has struggled in the wearable market for years, which is now dominated by Apple, Samsung and others. The acquisition of Fitbit would allow Google to get a strong hold on the wearables market. Both Alphabet and Fitbit have declined to comment on the news.
Google’s Wear OS is currently used by third-party companies like LG, Fossil etc. Back in January, Google had acquired Fossil’s smartwatch-related intellectual property. Google does not make its own smartwatch. Past rumors have pointed out that Google might release a Pixel smartwatch. A deal between Alphabet and Fitbit would allow Google to enter the wearables space and compete against the likes of Apple Watch and Samsung Galaxy Watch. The report states that a deal for Fitbit would be beneficial, as its dominant share of the fitness tracking sector is being cannibalised by cheaper offerings from companies such as Huawei and Xiaomi.
On the news of Fitbit’s acquisition, the brand’s stock rose over 30 percent. Fitbit helped pioneer wearable device craze with its fitness trackers that offer features like pedometer, calorie counter, distance covered, sleep quality, and heart-rate. The brand acquired smartwatch manufacturer Pebble in 2016 but failed to find any success with smartwatches. The company cut down its 2019 revenue forecast in July, blaming disappointing sales of its cheapest smartwatch Versa Lite and Versa 2.