Google buys Fitbit for $2.1 billion
now It’s official: Google buys Fitbit. The company announced the move in a blog post this morning, and reports say the deal is worth $2.1 billion.
Google SVP of hardware, Rick Osterloh, dismissed the announcement of the acquisition on the Google blog, saying the motion was “an opportunity to invest even more in Wear OS, as well as the introduction of Google’s wearable devices on the market.”
This is the second time this year, Google has made the acquisition aims to strengthen Wear OS, having bought before an unknown technology, from Fossil group for $ 40 million.
“by Fitbit is a true pioneer in the industry and created compelling products, experiences, and a vibrant community of users.” Osterloh further. “Through close collaboration with Fitbit the team of experts, bringing together the best AI, software and hardware, we can help you, in-company innovations in the wearables and build products that even more people can benefit even in the whole world.”
As we wrote earlier in the week, Google is dead last in the smartwatch market, thanks mainly to a failure of its supply chain. Its main competitors Apple and Samsung, both of which produce their own system-on-a-chip (SoC) design departments, which are in the position to, a custom chip design is based exclusively on smartwatches. Design a SoC for this ultra-compact form factors, giving these companies a great advantage in device performance, battery performance, and compactness, all of which are critical aspects of a smartwatch.
Google does not have its own chip design Department and manufacturers must instead rely on Qualcomm, the mobile market is the largest chip. So far, Qualcomm has not shown the great interest in the wearables market, and has only repackaged smartphone chips with aging technology. They were not in the least competitive with what Apple and Samsung are able to produce, so Wear OS devices are generally slow, large, and have poor battery life. Fitbit not just with off-the-shelf ARM designs for their products, so this acquisition seems like it will fix Google’s core wearables problem.
In terms of cost, Fitbit’s $2.1 billion price tag, Google is the fifth-largest acquisition ever, after Motorola (US $ 12.5 billion), Nest ($3.2 billion), Adsense ($3.1 billion), and catcher ($2.6 billion). The deal is expected to be sometime in the year 2020.
Listing image by Valentina Palladino
Released on Fri, 01 Nov 2019 14:01:40 +0000