Fitbit’s stock surges 17% after Google agrees to buy the company
Ahead of the holiday madness in 2019, a major deal has just been struck to bring the popular wearable fitness trackers to Google platforms. Google has announced that they will be acquiring the popular fitness tracker brand FitBit for just north of $2 billion. This partnership is hot off the presses and opens the doors of opportunity for Google. Google’s Senior Vice President, Rick Osterloh announced the news on the eve of November, stating that the company could now introduce more integrated technology into their existing Made by Google platform.
The acquisition also buys opportunities for Google to harbor greater usage from their Wear OS systems. In the terms and conditions of the deal, Google has already ensured FitBit that it will not be prohibited to introduce any additional advertisements through program offerings, keeping the ad-free nature that existing users have come to know and love. The transaction will impact the way Google helps to integrate their existing devices to the popular fitness tracker program. Creating additional content and smarter devices through the use of Android connectivity is a major win for Google. They will now be able to add to their concepts and bring a closer comparison to the Apple Watch and other such iTunes connected devices. Merging the Android platform with the existing functionality of the FitBit platform can only increase the productivity in usability for customers.
Made by Google was a platform that was intended to spark interest with users who enjoy the Google platform and Android operations within the company. Failing to make much movement since the program was accepted late last year, Google knew it had to make some major changes to improve this platform. The FitBit buyout will help paint a new picture for how this program is run and will greatly impact its progress. It helps to open the doors for Google to introduce its own line of wearable devices that can hold the same tendencies and performance levels of existing FitBit models. It will help to create new designs and technology that can influence the bottom line Google now possesses within this industry space.
The news being released ahead of the holiday season is also a major win for fourth quarter sales and developments for the company. With the impact to the bottom line created through FitBit acquisition, Google will now be able to showcase just how quickly they can work in terms of fast and relevant development. Content streams are already being added to the Google Play store and the website which will soon feature the sale of FitBit devices. This preparation will help the company create an impact to fourth quarter sales, attempting to reach numbers that would exceed holiday and seasonal efforts of the past. This development now creates a historic change for the company as they set out on a journey that will be tenured by the success that is influenced through this brand acquisition. Google will have their work cut out for them, but this partnership will pay dividends as it is drawn out of the next few years.
