Company, announces a big miss on Q3 Earnings, a Convenient Rumor claims that the Company has made a Bid to buy Fitbit." Today, rumor has quickly become fact.
Google parent company Alphabet will buy Fitbit, putting the tech giant head to head with Apple in the fitness tracking space. The deal values Fitbit around $2.1 billion at a fully diluted equity value, according to Friday’s announcement.
Fitbit's official press release states "Fitbit, Inc. today announced that it has entered into a definitive agreement to be acquired by Google LLC for $7.35 per share in cash, valuing the company at a fully diluted equity value of approximately $2.1 billion.
James Park, co-founder and CEO of Fitbit: “More than 12 years ago, we set an audacious company vision – to make everyone in the world healthier. Today, I’m incredibly proud of what we’ve achieved towards reaching that goal. We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier, more active life. Google is an ideal partner to advance our mission. 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. I could not be more excited for what lies ahead.”
Rick Osterloh, Senior Vice President, Devices & Services at Google: "Fitbit has been a true pioneer in the industry and has created terrific products, experiences and a vibrant community of users. We're looking forward to working with the incredible talent at Fitbit, and bringing together the best hardware, software and AI, to build wearables to help even more people around the world."
Consumer trust is paramount to Fitbit. Strong privacy and security guidelines have been part of Fitbit’s DNA since day one, and this will not change. Fitbit will continue to put users in control of their data and will remain transparent about the data it collects and why. The company never sells personal information, and Fitbit health and wellness data will not be used for Google ads.
The transaction is expected to close in 2020, subject to customary closing conditions, including approval by Fitbit’s stockholders and regulatory approvals.
The company added that "Fitbit will continue to remain platform-agnostic across both Android and iOS."