Google parent Alphabet agrees to buy Fitbit – CNET

Google’s parent company Alphabet agreed to purchase Fitbit in a deal that values the wearable maker at approximately $2.1 billion, it announced Friday. In announcing the transaction the company seemingly confirmed a Monday report that Alphabet “made an offer” to buy the wearable company.

Fitbit is behind fitness trackers like the Versa 2 smartwatch and the Charge 3 band, which are compatible with both Apple’s iOS and Google’s Android operating systems (the Apple Watch is iOS-only). 

Google is hoping the move will help bolster its Wear OS wearable efforts. Introduced in 2015, WearOS was designed to help Google bring Android into form factors such as smartwatches and fitness trackers similar to how WatchOS has helped Apple expand iOS. Unlike the Apple Watch, however, Google’s platform has failed thus far to catch on with consumers despite attracting a host of high-profile partners such as Tag Heuer, Fossil, Michael Kors and Movado.

In a blog post announcing the deal, Rick Osterloh, Google’s senior vice president of devices and services, praised Fitbit while teasing what the announcement will bring. 

“Over the years, Google has made progress with partners in this space with Wear OS and Google Fit, but we see an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market,” Osterloh writes.

“Fitbit has been a true pioneer in the industry and has created engaging products, experiences and a vibrant community of users. By working closely with Fitbit’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.”

In a press release, Fitbit says it expects the deal to close in 2020. In the same message, the company also reaffirmed that it “never sells personal information, and Fitbit health and wellness data will not be used for Google ads.”

Alphabet released a sluggish financial report Monday, with $40.49 billion in sales (exceeding analysts’ estimate of $40.32 billion) and earnings per share of $10.12 (below the expected $12.42 per share). 

We can expect to see Fitbit’s third-quarter earnings report on Nov. 6, the company said last month.