As Alphabet, Google's Parent Company, announces a big miss on Q3 Earnings, a Convenient Rumor claims that the Company has made a Bid to buy Fitbit
Alphabet, Google's parent, announced a big miss on Q3 earnings by delivering $10.12/share vs. $12.42/share expected. You could review their third quarter results here. To help change the conversation about their bad quarter, reports are now circulating that Alphabet has made an offer to acquire U.S. wearable device maker Fitbit Inc, as it eyes a slice of the crowded market for fitness trackers and smartwatches where Apple is the leader.
With a Fitbit acquisition, Alphabet (or Google) would be able to catch up with the Apple Watch a little quicker having a strong installed base to work with.
Reuters reports that "There is no certainty that the negotiations between Google and Fitbit will lead to any deal, the sources said, asking not to be identified because the matter is confidential. The exact price that Google has offered for Fitbit could not be learned. Google and Fitbit declined to comment.
Fitbit shares rose 27% on the news, giving the company a market capitalization of $1.4 billion. Alphabet shares rose 2% to $1,293.49. For more on this, read the Reuters report. CNBC reports that they also have a source that confirms an offer was made.
Is the offer for real or just a way to calm down Wall Street with their big Q3 miss? Only time will tell.