Google reportedly beat Facebook and offered twice as much to acquire Fitbit for $2.1 billion
Google doesn't just want a place in your home. It reportedly fought off Facebook to earn a spot on your wrist.
On Friday, after a week of rumors, Google announced it will be acquiring Fitbit, the wearable fitness trackers, for $2.1 billion. This latest move comes after Google's $40 million purchase of Fossil's smartwatch technology in January, reports CNBC, and shows the tech giant's "aggressive attempt" to up their game in the wearables race, The New York Times observes.
Facebook has also been expanding its hardware portfolio with "Oculus virtual headsets, Portal smart speakers and planned AR glasses," and their interest in health tracking goes back to 2014, when the social network acquired a fitness app called Moves, The Verge notes. So it may not be surprising that Facebook purportedly held talks to buy the smartwatch pioneer — but ultimately, Facebook lost the deal to Google, who offered twice as much, reports The Information.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Google's presence in the wearables market is limited to Wear OS, which failed to sway Apple Watch users, CNET notes. And while Fitbit was the closest competitor to Apple Watch — which owns about half of the global wearables market — Fitbit has been struggling this year, reporting sinking sales in its July earnings, the Times reports.
"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," Fitbit co-founder and CEO James Park told CNN Business. As a reality check for the celebrating tech companies, Wired predicts that the acquisition "will attract the attention of antitrust regulators" before the deal is finalized in 2020.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Ramisa Rob is a web intern at The Week. She is also an investigative reporting fellow at Brian Ross Investigates, and has previously worked for the The Daily Star. A recent graduate of the University of Michigan, she is currently pursuing her Masters at NYU Tisch.
-
The best homes of the year
Feature Featuring a grand turret entrance in New York and built-in glass elevator in Arizona
By The Week Staff Published
-
Nordstrom family, investor to take retail chain private
Speed Read The business will be acquired by members of the family and El Puerto de Liverpool, a Mexican real estate company
By Peter Weber, The Week US Published
-
Biden commutes most federal death sentences
Speed Read The president downgraded the punishment of 37 of 40 prisoners on death row to life in prison without parole
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published