Fitbit is a manufacturer that is known for its affordable fitness trackers. The company plans to expand its business and to become a more influential name in the market for smart watches. Fitbit interested in buying Pebble. Why new Fitbit buy Pebble business? According to unconfirmed information, the price of this deal will be between 34 million and 40 million dollars. The acquisition will most likely end brand Pebble. The main reason for the company’s desire to sell their business Fitbit has financial problems.
FITBIT BUY PEBBLE BUSINESS
The latest report from IDC shows that smart watches have reported 52% fewer sales on an annual basis in the third quarter of 2016, Inform VentureBeat. Pebble face fierce competition from leading technology companies such as Apple, Samsung, LG, Motorola, Asus and others. Just a few months Pebble fired 15% of its staff in an attempt to improve their financial condition. Perhaps you do not know, but it introduced its first smart watch for two years before Apple to launch its first model in this market niche.
A curious fact is that Pebble has already received at least two offers to acquire other companies. In the summer of last year, they rejected a proposal from Citizen worth 740 mln., Which is almost 20 times the lower value of the deal with Fitbit. At the beginning of 2016 . Intel made an offer to buy the company in the amount of 70 million . All of these data in the best way demonstrate how reduced market capitalization Pebble in recent months.
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