[Update Dec 7th] Today it was announced that Fitbit has officially acquired Pebble, including”key personnel and intellectual property related to software and firmware development”.
However, the acquisition did not include any of Pebble’s hardware, that will be left behind in the process and instead Fitbit has decided to stick with its own design and manufacturing teams and design their own with the help of Pebble’s patents.
The CEO of Fitbit, James Park said that this will allow them to conduct faster delivery of new products and software updates, whilst better competing with its rivals.
So after becoming one of the largest funded Kickstarter projects of all time, Fitbit is pretty much dead.
[Original Story] A report from The Information was released today that states that Fitbit may be looking to acquire the smartwatch maker Pebble for a total of $40 million.
It is claimed that Fitbit are looking to acquire Pebble mainly for the intellectual property and wearable expertise that Pebble currently owns, in order to expand upon Fitbit’s current offering.
This comes after reports of financial difficulty of Pebble, who have reportedly amassed massive debt after poor sales numbers, forced to lay off a quarter of its workforce in March. In an effort to reduce this debt, Pebble did reach out to a number of investors and debt funding companies, however, if this report is true, it may be the case that the funds they may have got were not enough.
This comes after the first Pebble smartwatch was launched on Kickstarter back in 2012, when it hit the market to huge success, raising nearly $10 million on the platform and quickly becoming one of the best smartwatches out there, however, as more competitors reached the market, Pebble seemed to fall out of the picture somewhat, despite later launching the Pebble Core, Pebble 2 and Pebble Time 2 recently.
So this is quite bitter news for Pebble, who previously received a takeover bid from Citizen in 2015 for $740 million and from Intel earlier this year for $70 million, so $40 million is quite the step down.
We haven’t heard anything official about this report yet, however, as soon as we do we will let you know.
Source: The Information