Thursday, 21 November 2019

NEWS AND STORIES

Fitbit snapped up by Google in $2.1bn deal - Newyorkdaily247.com

Posted On Saturday, 02 November 2019 23:14 Written by Newyorkdaily247.com: The international daily newspaper
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Fitness device marker Fitbit is being bought by Google for $2.1bn (£1.6bn).

The move allows Google to expand into the market for fitness trackers and smart watches. It comes at a time when loss-making Fitbit has been looking to expand into other areas.

“Google is an ideal partner to advance our mission,” said James Park, co-founder and chief executive of Fitbit.

The bid values Fitbit at $7.35 a share, a premium of about 19% to the stock’s closing price on Thursday.

“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 Mr Parks, who founded Fitbit 12 years ago.

Fitbit has sold more than 100 million devices, but had put itself up for sale last month in the face of waning demand for its products as other companies enter the market.

Its shares have jumped 40% since Monday, when Reuters reported the interest from Google.

Fitbit said its “health and wellness” data would not be used for Google adverts.

The transaction is expected to be completed in 2020.

Read 1349 times Last modified on Saturday, 02 November 2019 23:23

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