Google owner Alphabet is eyeing the smartwatch market with its offer to acquire Fitbit over an unspecified amount.
It is unclear whether negotiations between the two will lead to any deal. The whole matter is supposed to be kept confidential, hence both companies did not comment.
Fitbit has been in the smartwatch market for over 12 years, but it has been suffering lately due to strong competition from the Apple Watch and Chinese manufacturers producing high-quality products for cheap.
Regardless, it has a vast customer base that Alphabet could greatly benefit from. The acquisition might breathe new life into the struggling business with powerful backing from Alphabet.
This will also allow Alphabet/Google to tap into a vast pool of health data from customers and provide them with proactive suggestions and smart coaching. Rumor has it that the company is developing something called a Google Coach, which might work alongside Google Fit.
Although insiders are claiming that this deal is planned, there is still no guarantee of it ever panning out, but it does appear to be likely since Fitbit reportedly reached out to investment bank, Qatalyst Partners, to look for a sale.
The deal might result in Google based smartwatches or it might only incorporate more fitness features into Wear OS.
Stay tuned for future updates.