Fitness wearables manufacturer Fitbit is closing in on a deal to acquire smartwatch manufacturer Pebble, reports The Information. The publication’s sources reveal that the deal would include Fitbit taking over Pebble’s intellectual property including its in-house smartwatch operating system. However, if the report is to be believed Fitbit will pull the plug on the Pebble brand when the deal finally goes through.
The report does not reveal any price for the deal but says its sources have been informed that it is expected to be for "a small amount”. However, other media reports suggest that the price of the deal could be in the range of $35-40 million.
Things haven’t been going great for the the smartwatch company. Earlier in the year, it laid off 25 percent of its workforce. Its CEO blamed cash crunch for the decision.
Money is pretty tight these days.Eric Migicovsky, CEO, Pebble
The takeover will come as a surprise to many market analysts who claimed strong projected growth for Pebble. The smartwatch company , a Kickstarter project initially, had raised more than $25 million for its Pebble Time smartwatch.
(Source: The Information)
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