Google has agreed to acquire Fitbit according to an announcement in a post earlier today. The deal will see Google pay $7.35 per share for Fitbit in an all-cash deal which totals about $2.1 billion.
In the press release today Google referred to how its and Fitbit’s “goal is closely aligned for long-time focus on wellness and helping people live healthier, more active lives. But to get this right, privacy and security are paramount.” With that Google is still saying they will not use the data for marketing or any of its data programmes.
While half of me believes this message, the cynic in me knows that Google has made the acquisition for more than just the hardware capability of the Business. Which is the user data and that is precious to a company like Google? But what does that mean for the user platform in its current form? Well, looking at the press release, no commitment is made and reading DC rainmaker blog, he got a “no comment” from Fitbit PR’s team
But then looking back at the hardware side, it gives Google a stepping with Fitbit’s software and hardware teams to develop new products. For instance, the much-rumoured Google Pixel smartwatch.
The other consideration is the recent Versa 2, that has Alexa built in. What does this mean for Amazon, now Google is on the scene? One can only think Alexa get ditched in favour of Google Assistant.
They expect the deal to close at some point next year, pending the standard regulatory and stockholder approval. After that Google says it plans to work closely with Fitbit to combine the best of their respective smartwatch and fitness tracker platforms.