Google Acquires Wearable Company, Fitbit For $2.1 Billion

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The fitness tracking company will reportedly now be owned by Google following the completion of its acquisition by the software giant

Google in its latest announcement has revealed that it has just acquired a fitness tracking company- Fitbit for an estimated worth of $2.1 billion. In a blog post that contains detailed information about the acquisition, the search giant through its SVP of devices and services, Rick Osterloh informed that the Fitbit purchase is “an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market.”

While this is an indication that Google is quite keen with its wearable plans, the acquisition also means that Google may be taking a major wearable market share by the time it fully re-launch, considering that Fitbit currently holds the leadership position in terms of overall market presence ahead of Apple Watch and Samsung Gear. In 2018 alone, Fitbit was able to ship over 14 million units of its wearable to maintain the first position ahead of other brands.

Google has spent years trying (and largely failing) to break into the wearables market with its Wear OS platform, but it’s struggled to make a real impact, however, this acquisition will no doubt go a long way in changing the entire narrative about the tech giant’s dealing in the wearable space.

On the note of its acquisition, Fitbit will not be left out of the company’s operation, as it will be wholely functioning under the close supervision of Google itself. This particular case is similar to the current situation with Nest which is wholly under Google as well. This otherwise means either acquired company will not be operated outside of the company’s existing structure.

Also, the acquisition also means that Google will continue in line with Fitbit’s privacy policy, which by extension means issues related to health and fitness data will be taking seriously. On that note, Google said; “Fitbit health and wellness data will not be used for Google ads.”

Fitbit’s hardware chops have always been great, giving Google a much stronger foundation to build on for future Android-integrated wearables devices. And the company’s strong focus on fitness tracking could naturally be integrated into Google’s existing Google Fit apps, too, offering Google a solid alternative to the Apple Watch’s deep fitness tracking integration with the iPhone.

On the flip side, Google’s software skills and wide developer support could help Fitbit’s smartwatches like the Versa get a little smarter, alongside the deeper software integration with Android that a closer relationship could offer.

That been said, this latest acquisition by Google is just another attempt of the company into fitness-focused wearable– earlier this year, the company spent about $40 million in its purchase of some unknown smartwatch technology from Fossil. Now it only adds up to the fact that the company really wants to dominate the wearable market moving forward.

 

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