Google Acquires Fitbit for $2.1 Billion to Boost Wearable Tech Presence
Google purchases fitness tracker pioneer Fitbit for $2.1 billion to compete in the wearable technology market. The tech giant pledges that user health and wellness data will not be used for targeted advertising.
Google acquires Fitbit for $2.1 billion in a major push to compete in the crowded wearable technology market. The tech giant pays $7.35 per share for the San Francisco-based fitness tracking pioneer. This move signals Google's renewed effort to gain ground against tough competitors like Apple and Samsung in the hardware space.
Despite developing its Wear OS smartwatch software since 2014, Google struggles to establish a strong foothold in wearable hardware. The company's previous hardware venture, Google Glass, experiences a disappointing commercial release before pivoting to enterprise use in 2019. Buying Fitbit gives Google an immediate, established brand and user base in the fitness tracking industry.
The acquisition raises privacy concerns among users who are increasingly wary of how Google handles personal information. In response, both companies pledge that Fitbit health and wellness data will not be used to target Google ads. A Google executive promises users transparency, control, and the ability to review, move, or delete their data.