Fitbit to Acquire Pebble for a ‘Small Amount’

Fitbit is set to acquire troubled smartwatch-maker Pebble, according to a report from The Information. The deal is said to be mainly about the company’s intellectual property and software, and will likely result in the end of Pebble hardware.

In a subsequent report, TechCrunch says a source close to the startup pegged the deal in the neighborhood of $34 to $40 million, and it will just barely cover its debts. In the past, it was rumored Pebble received offers as high as $740 million.

Fitbit has up until now largely focused on fitness wearables. However, its acquisition of Pebble might suggest that the company is planning on launching its own smartwatch to take on the likes of Apple Watch and other Android Wear running smartwatches out there. With the smartwatch market declining though, the company does not particularly have much room to grow in this segment until and unless it manages to bring something new to the table.

Pebble’s official Twitter account seems to have confirmed the acquisition before deleting the tweet.


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