Alphabet Inc., the company that owns Google, has made a bid to buy US-based fitness tracking wearables and smartwatch manufacturer Fitbit, according to a Reuters report.
The report also says there is uncertainty about whether anything will materialise from these negotiations. There is also a lot of ambiguity around the exact amount that Alphabet has offered Fitbit for the deal.
Just like Apple and Samsung, Google has also ventured into making its own smartphones. However, it has not dived into the fitness tracking gizmo space in earnest. With this acquisition, Google might be looking to get a slice of the fitness tracker market.
According to the report, Fitbit shares rose 27 percent on the news, giving the company a market capitalisation of $1.4 billion. While Alphabet shares rose 2 percent to close at $1,293.49 (Rs 91,465).
Fitbit is one of the largest players in the smartwatch and fitness tracking gear segment and with this deal, Google can garner a lot of expertise in fitness tracking and perhaps incorporate the same in its WearOS.
Fitbit has recently partnered with health insurers and fitness experts to provide a holistic approach to a user’s fitness.
The company has been collecting tons of user data which helps it analyse fitness goals and recommends activities based on the same. Many analysts have said that much of the company’s value may lie with the health data it possesses.
This could also be a game-changer for Fitbit as it might be able to cover a larger user base, which is slowly shifting towards cheaper Chinese substitutes like Huawei’s Honor and Xiaomi bands.
Although, it would be premature to say that Google will launch Fitbit gear loaded with WearOS and Google’s suite of the app.
(With inputs from Reuters)
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