– Google’s parent company, Alphabet has made a bid to acquire Fitbit, according to sources familiar with the matter.
– The speculation drove Fitbit’s stock by more than 30%.
Google parent company Alphabet has made a bid to acquire fitness wearable company Fitbit, according to sources familiar with the matter. At this time, there is no definite if the negotiations between Google and Fitbit will lead to any deal, Reuters reports.
The digital health and wellness market is crowded, with an estimated 14 million U.S. adults currently subscribed to a service and paying an average of $174 annually for different apps. Based on this data, there remains a void in the market for a single app that can provide quality health and fitness tools, personalized guidance and coaching all in one place. The deal could position Alphabet against competitor Apple in the fitness and wearables space.
Fitbit Recent Announcements
In August, Fitbit recently announced a new collaboration with Singapore’s Health Promotion Board (HPB) on a healthy population health project in support of Singapore’s Smart Nation initiative. In addition, the company launched its paid subscription service in the Fitbit app that uses your unique data to deliver a personalized experience with actionable guidance and coaching.
Premium leverages insights from 10+ years of Fitbit data as well as academic and medical expertise to help you move more, sleep better and eat well with customized programs, advanced sleep features, personal insights, thousands of workouts, new challenges, health reports and more – all in one place.
Fitbit is scheduled to report third-quarter earnings on Nov. 6. Alphabet is scheduled to report third-quarter earnings later on Monday.