More than 12 years ago, we set an audacious company vision – to make everyone in the world healthier.James Park, CEO and co-foundre of FitBit
This is the opening of James Park’s announcement about deal, that was speculated heavily in the last couple weeks -> Google(well Alphabet) officially acquired FitBit and all it’s parts in a $2.1 billion deal. In the announcement FitBit looks over all the positives that partnering with Google could provide in order to accelerate the innovation and scalability of their new products.
However for people familiar with the Fitbit company this does not come as a surprise. The company goes through a hard period, as both Apple and Samsung managed to get a huge pile of the smartwatch cake, while Huawei and Xiaomi manage to produce fitness trackers of similar functionality and design considerably cheaper. Anonymous sources claim that this has lead to internal pressure on James Park to resign and appoint a new CEO to lead the company.
This is a expected move from Google, who have always valued data quite highly and FitBit’s biggest actual strength is in collecting data from their products. In addition to that, the company was the one to pioneer the smartwatch industry and as a first player on the market has a decent following and tons of people using the products, especially after successful launch of FitBit Versa. However FitBit Versa Lite sold quite poorly, which was the official reason the company gave to shareholders when they reduced the expected revenue for the year. This seems to be fixed with the new release of FitBit Versa 2 which we found out to be quite decent offering, but noone knows whether it will manage to sell.
The deal is expected to be closed in the beginning of the next year, subject to approval by shareholders and regulatory approval.