Google announced that it’s buying Fitbit – the wearable company for 2.1 billion. It’s purchase will give them the “opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market”, stated by Google SVP of devices and services Rick Osterloh.
According to the deal with Fitbit, it will be joining Google which is a similar situation to Nest, where it’s under by Google compared to Alphabet who had originally acquired Nest smart home company but left it as a subsidiary under it’s company’s structure.
Fitbit announced in a separate press release that the user’s data acquired by Google for health and wellness data will not used for Google Ads.
Reasons for Google to acquire Fitbit:
- Google spent years trying to join the wearable market with it’s own Wear OS, but struggled to make an impact.
Together with Fitbit’s hardware and Google’s strong foundation of Android-integrated wearable devices, Google can offer a solid alternative to Apple Watch fitness tracker.
Google’s investment on Fitbit fitness wearable isn’t the only one, back in January, Google spent $40 million to buy an unknown smartwatch tech from Fossil which was aquired when Fossil bought wearable maker Misfit back in 2015.