A report has revealed that Fitbit is in the process of acquiring smartwatch maker Pebble for $40 million, at the most #todaymagic
The Information reported on the alleged acquisition offer and the fact that Pebble products, as we know them today, will progressively disappear from the market. Fitbit will take control over their intellectual property and software. According to TechCrunch, Fitbit wasn’t the first company interested in buying out Pebble and for much, much more money. Last year, watch maker Citizen offered $740 million but the deal failed. Intel then made a $70 million proposal but CEO Eric Migicovsky refused.
Fitbit’s offer is their last hope probably, since the money can barely pay their debts, a reportedly $28 million. The first sign of trouble appeared in March, when the company announced it was going to lay-off 25% of staff. Believe it or not, Fitbit isn’t doing fine, either. In one year, shares fell to $8.40 as smartwatches aren’t quite as exciting for the end consumer as in 2015. About 2.7 million smart watches were shipped in Q3 this year as opposed to the 5.6 million in Q3 2015.
The deal wasn’t officially announced by the companies so stay tuned for future updates on the matter.
Follow TechTheLead on Google News to get the news first.
