Google to acquire Fitbit for $2.1 billion
Google is buying Fitbit for $2.1 billion in a deal expected to close in 2020, the fitness company announced Friday.
Why it matters: It's an attempt by Google to "bolster its lineup of hardware products, which already includes smartphones, tablets, laptops and smart speakers. Fitbit makes a lineup of fitness-tracking devices, but has faced stiff competition from Apple after the introduction of the Apple Watch," The New York Times reports.
- The $7.35 per share price is higher than where Fitbit has traded since late 2016, but a far cry from its post-IPO days in the $40s, per Axios' Dan Primack.
What they're saying: “With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone," said Fitbit's co-founder and CEO, James Park.
Our thought bubble, per Axios' Dan Primack: Fitbit says it "never sells personal information, and Fitbit health and wellness data will not be used for Google ads."
- What Fitbit doesn't say: "Google sees you when you're sleeping. It knows when you're awake. It knows if you've been bad or good, so be creeped out for goodness sake."