Alphabet one of the parties interested in taking over Fitbit

Oct 28, 2019 17:49 GMT  ·  By

Google’s parent company Alphabet has reportedly made an offer for Fitbit, the wearable manufacturer that is believed to be exploring a possible sale.

While no specifics have been shared, Google is likely interested in taking over Fitbit in an effort to step into the wearable market and build a product that can compete against the Apple Watch.

Rumors regarding a potential Google Pixel Watch have been swirling around for several years already, but the Mountain View-based tech company is yet to come up with such a device. A recent report indicated that Google was very close to launching a smartwatch in 2016, only that the project was canceled by the leadership team before the planned unveiling set for October.

Unreliable syncing and a design that didn’t match the expectations have been cited as two of the reasons that led to Google canceling this project three years ago.

Fitbit losing ground

Now it looks like Google wants to resume efforts to expand in the wearable market using Fitbit.

Reuters reports that while Google has indeed made an offer, no decision has been made so far, and there’s no reason to believe that the negotiations would lead to a deal.

Neither Google nor Fitbit commented on the rumors, but shares of the wearable company increased 27% following the report, pushing the company to am market value of $1.4 billion.

Fitbit’s sales have been slowing down despite new models like Versa and Versa Lite. According to IDC data, Fitbit sold 13.8 million units last year, a decrease of 10 percent from the previous year.

However, in terms of wearable sales (not just smartwatches, but also other wearables like ear-worn devices), Fitbit is only third in the charts after leader Apple and runner-up Xiaomi. Apple sold no less than 46.2 million units in 2018 for a market share of 26.8 percent versus Fitbit’s 8 percent.