According to the news report from Popular news Portal Reuters, Google’s Parent Company Alphabet is planning to purchase Fitbit. With the talks going on with Fitbit, Google’s parent Alphabet is in the advanced phase with the negotiations. As soon as the news broke, the stocks of Fitbit sore to the new lows in the United States Market. Fitbit was exploring the options of getting sold from the last month. This month, they received the offer from the Alphabet, and the talks are ongoing about the potential deal. As of now, there is no information available about the terms being discussed for the acquisition.
Google is already active in the wearable smartwatch industry. With the Wear OS operating system present in almost all of the wearable devices, the company holds a significant chunk in the industry. But lately, Google is struggling to compete with Apple Watch devices. With the falling popularity of the Wear OS-based devices and the increasing popularity of the Apple Watch, Google decided to start negotiations with Fitbit. Even though the manufacturers like LG, Tissot, TicWatch, Fossil, and Even Fitbit use the WearOS operating system, but the popularity of Apple Watch is forcing everyone to renovate. That’s why Samsung decided to Opt-out of using the Wear OS in favor of in-house Tizen OS.
Google’s parent Alphabet has already started making moves by acquiring technology from Fossil. Alphabet acquired the smartwatch technology from Fossil in January 2019 and paid nearly $40 million. As of now, both the companies have not shared the details about the technology. With the latest Pixel 4 smartphone launch, everyone expected Google to launch the new Pixel Smartwatch in the markets. But Google didn’t release the smartwatch as they are still working on it. With the Acquisition of Fitbit, Google will start working on the new Fitbit and Pixel Smartwatch Hybrid in the markets.