Google Acquires Fitbit For $2.1 Billion, To Develop Its Smartwatch
We have actually been expecting the announcement and, it is now official. Rick Osterloh, Googleâ€™s hardware manager, has finally announced that the Google acquires Fitbit for $2.1 billion.
Google To Develop Its Smartwatch With Fitbit’s Resources
The company will continue its business for the moment but will be fully integrated into Googleâ€™s activities, under the banner Made by Google, which includes all devices designed by the brand.
Rick Osterloh sees in this acquisition â€œAn opportunity to invest even more in Wear OS. As well as to introduce Made by Google devices in the wearable marketâ€. Google is willing to launch its own smartwatch but its operating system â€œWear OSâ€ still needs further development.
A few months ago, the search giant had already grabbed some of the technologies developed by Fossil for $40 million.
The experience acquired byÂ FitbitÂ in the field of activity monitoring but also in the design of smartwatches should be used in this project and could accelerate its development. Google Fit, the health platform of the California giant, should also benefit from technologies developed by the manufacturer.
Google Stamping Its Feet On Wearable Market
In a separate press release, Fitibit wants to reassure its customers. And explains that the health and fitness data collected by its devices will remain confidential. And Google will not use it for its advertising.
The buyout should be finalized in 2020, allowingÂ GoogleÂ to hit Samsung, the current number two in the connected watch market with 15.9% of global sales. Apple is first with a 46.4% market share in the second quarter of 2019.
â€œFitbit has been a true pioneer in the industry. And has created engaging products, experiences and a vibrant community of users. By working closely with Fitbitâ€™s team of experts. And bringing together the best AI, software and hardware. We can help spur innovation in wearables and build products to benefit even more people around the world.â€ said Rick Osterloh.