Fitbit acquires struggling Pebble for around 40 million dollars
Pebble, what was once a company that broke all of Kickstarter’s records again and again with its smartwatches, is about to be acquired for just about 40 million dollars. The buyer is Fitbit, the company behind the number one fitness tracker band, so Pebble is in capable hands. But why did all of that happen? Here’s what lead up to the deal:
You might have heard about Pebble – it is fair to argue that it was the company that was responsible for intensifying the smartwatch hype into the mainstream. Three of the four top funded projects on Kickstarter are from Pebble – from their first model, to their latest. Reports said that not so long ago (2015), watch maker Citizen was interesting in buying out the company for 740 million dollars and Intel was willing to pay 70 million later on.
In comes last year and smartwatches kind of fall off. They didn’t hit the ground running like expected, people mostly bought the Apple Watch, if any. Pebble had to lay off 25 percent of its staff in March and started having a lot of debts. Suddenly, the once star-studded company doesn’t look so good. And that’s where Fitbit came in. And while it was also hit by the bad trends in the smartwatch market, the acquisition might breathe in new life into its products.
While Fitbit mostly focuses on health-related features like measuring your pulse while being a simple armband, Pebble has more experience in making actual “smart” products. It also has a big community supporting it, so the brand is definitely valuable. Together, the two companies might find the middle ground between smart-ness and practicality.
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