Google has finally acquire the U.S. wearables device maker, Fitbit Inc. for $2.1 billion with $7.35 per share in cash. The company went ahead of Facebook to make the actual purchase.
The search giant, Google wasn’t the only tech company that was interested in Fitbit, as social media giant, Facebook was also in talks to buy the fitness tracking firm before Google.
But it seems like Google offered twice as much than Facebook is offering. Anyways, Facebook is trying to venture massively into the hardware markets with its own Oculus virtual reality headsets, Portal smart speakers, and AR glasses.
Nevertheless, Fitbit will officially join Google itself but Fitbit still takes privacy for health and fitness data seriously, as it notes that “Fitbit health and wellness data will not be used for Google ads.”
Google SVP of devices and services Rick Osterloh said 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.”
This isn’t the first time, Google will be going for big acquisition, YouTube, Nest, HTC, Motorola, DoubleClick and many others. But Motorola, and Nest deal didn’t went well.
During the Motorola’s acquisition, chief of Google hardware, Rick Osterloh was the president of Google’s Motorola but they didn’t utilized the opportunity very well.
The idea behind this acquisition is likely to be simple, Google wants to build smartwatch and fitness band hardware and Fitbit helps them do that more quickly.
After all, Google has been trying to enter the wearable products markets with its Wear OS platform but has been failing seriously. Maybe or maybe not, the Fitbit acquisition might bring them back.
Even tho, Fitbit users are likely to migrate to purchasing Apple’s watch, Google Fit apps might service as a solid alternative to the Apple Watch’s deep fitness tracking integration with the iPhone, since the Fitbit fitness tracking will naturally be integrated with Google fit apps.