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Google Buys Fitbit For An All-Cash Deal Of $2.1 Billion

This article is more than 4 years old.

The beginning of November this year saw the confirmation of another major investment on Google’s part, this time in the wearable technology. Google has recently announced their interest in acquiring Fitbit, the well-known pioneer in the wearable tech industry. Only days after the report, Google signed an all-cash deal for $2.1 billion dollars that brought them a step closer to their goals in this market space.

Google’s Plan With Fitbit Acquisition

Google’s recent acquisition of Fitbit is not the first time the company has shown interest in wearable technology. In fact, they worked on Wear OS and Google Fit way before there was any thought of purchasing Fitbit. However, this recent investment proved to be a positive outcome on both parts.

Fitbit’s prices were fluctuating frequently due to company’s constant changes and attempts to please an evolving market. Fitbit prices went through a real roller coaster from an all-time high of 51.90$ to the lowest they have ever been at 2.81$.

At the time the deal was made, Fitbit’s shares were worth 7.35$ each. Thus, the total amount of cash Google provided for the purchase was 2.1 billion dollars. Google’s device SVP Rick Osterloh explained how this investment can lead to more innovation in wearable technology and the development of new and advanced wearable products.

Namely, Google believes they can bring the best AI, software, and hardware to the market. Combining Google’s AI and Fitbit’s products would lead to the creation of better wearable devices that would serve people from all over the world.

With Apple already being one of the leaders in the wearable industry thanks to their Apple Watch series, Google is trying to catch up and earn some new achievements in this field.

What Will Happen to the Existing Fitbit Users

With over 28 million active users across the world, Fitbit has collected enormous amounts of health data. Google’s acquisition of Fitbit can cause the users of this wearable technology to be concerned over their privacy.

Luckily, Google has confirmed that they will not sell any Fitbit users’ data or use it for advertising purposes. Therefore, if you’ve owned a Fitbit prior to now, nothing much is going to change on your part. Google will even give users the option to delete all data that was ever stored through their device.

On the other hand, we can expect lots of new products and innovations with Google’s unique twist to them. Since the company has openly admitted that they have no secret agenda behind the Fitbit investment, the users can rest assured their data is still safe.

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