You cannot beat your enemy if you don't get closer. Google acquired FitBit with US$2.1 billion to enter the wearable device battle. (Image via Kompas Tekno)

Google acquires FitBit, strengthens its ground against Apple

Alfonsus Adi Putra
Business & Industry
Electronic Device
Nov 03, 2019
2858
To take on Apple and Samsung, Google decided to also hop into the sports watch and fitness tracker business. At US$2.1 billion in cash, Google acquired FitBit Inc. The purchase was the second-biggest in 2019, the first, biggest purchase was made in June when Google acquired cloud software provider, Looker.

The move was anticipated as Google revealed on Friday that it would invest more in health trackers and develop its own wearable device with FitBit. Google paid US$7.35 per share; as a result, FitBit's share price rose 17%.

Under Google, FitBit now also has a stronger ground to fight against its competitors, Apple with its Apple Watch, Samsung with its Galaxy Fit and Galaxy Gear, and Huawei and Xiaomi with each Band. Globally, Xiaomi ruled the health tracker and wearable device market with a 17.3% market share in Q2 of 2019.

Currently, FitBit has around 28 million active users on its platform. By the acquisition, Google now has access to health and personal information as well.

In January 2019, Google acquired Fossil Group Inc. Together with FitBit, Google is trying to design its own, revolutionary wearable health tracker device.

The fact and acquisition attracted extra scrutiny from the U.S antitrust regulators. Some regulators are curious about what Google wants to do with the personal data of the 28 million FitBit users, including health and location.

Google is already under the watch of the antitrust investigation by the U.S regulators, backed by a bevy of anti-Google supporters, seeking how Google abuses its influence and market power to crush smaller opponents and dominate the competition.

FitBit is not free from scandal as well. In 2011, it was found out that the data on sexual activities of FitBit users are accessible online. In the acquisition statement, Google promised that the users will get the privilege to do whatever they want with the data, and far be it from Google to use this data for its advertisements.

In August, FitBit released Versa 2, its latest wearable device, equipped with Amazon’s Alexa and other smart features.

In October, Fitbit announced a partnership with Bristol-Myers Co and Pfizer Inc., to further develop its heartbeat detection feature to early detect atrial fibrillation or irregular heartbeat.

Source: https://time.com/5716260/google-buying-fitbit/