Google Buys Fitbit for $2.1 Billion to Rival Apple
Alphabet agrees to acquire Fitbit for $2.1 billion in cash to boost its wearable technology and compete directly with Apple. Lawmakers immediately raise serious privacy and antitrust concerns regarding the massive deal.
Google announces a $2.1 billion cash deal to acquire Fitbit, positioning the tech giant to compete directly with Apple in the fitness tracking market. The purchase price stands at $7.35 per share, causing Fitbit stock to surge significantly as the market digests the news. The transaction is expected to officially close in 2020.
The acquisition aligns with Google's strategy to enhance its Wear OS software and expand its ambient computing hardware ecosystem. Google's hardware chief states that the company plans to combine the best of both smartwatch platforms to spur innovation in the wearable technology space.
Despite Google promising not to use Fitbit health data for advertising purposes, the deal draws immediate scrutiny from lawmakers. A leading antitrust investigator calls the acquisition a major test for regulators and warns that it gives Google deep insights into sensitive personal information, demanding an immediate and thorough investigation.