Fitbit, the fitness tracking brand which has been gaining a mass popularity among the fitness conscious is reportedly in plans to buy Pebble. The takeover will mean a complete integration of the Pebble brand into FitBit and Pebble as a brand might cease to exist or manufacture gadgets under their name. Fitbit will hold rights to all of Pebble’s intellectual property and devices. The news was initially reported by The Information and has since then been verified by multiple news sources. Pebble, which gained it’s fame through Kickstarter, the popular crowd-funding platform has been famous for their smartwatches and their gadgets. The coolness factor coupled with the relatively low price-tag as compared to other watches in the market have made Pebble famous.
However, despite it’s fame, owing to the rising competition, Pebble sales have been declining and the company has been facing a severe financial crunch. Pebble has been actively looking out for buyers and the Fitbit Pebble coupling will aid both brands in strengthening their offerings – albeit, Pebble by itself will cease to exist and Pebble devices will also be launched under FitBit brand. Pebble has been laying off employees due to lack of funds and the situation for the brand has been dire. Although it did manage to raise a funding of $26 million in 2015-2016, the costs have not covered the losses and the performance has not been as great as expected. For Pebble, while their initial Pebble Smartwatch was all the storm, the excitement soon wore off as multiple other players entered the market with similar offerings.
While the news of the two giants being in talks is floating around, there has been no particular timeline set. It is unclear when the deal is expected to fall in place and what exactly are all the terms and conditions. However, what is known is that FitBit is willing to offer up between $30 to $40 million for the acquisition. It is still unclear what will happen to the Pebble staff if the deal falls through. Will they be retained and merged in with the existing FitBit staff or will they be handed the Pink Slips. FitBit and Pebble have both slowly entered the Fitness Smartwatch space with their offerings. While Pebble’s initial offerings were simple, the brand expanded to offer devices with advanced fitness tracking features like heart-rate monitor, sleep tracker, etc. FitBit too has similar offerings across a range of devices. Huawei launches Huawei Mate 9 and Huawei Mate 9 Porsche Design premium smartphones
Although Pebble smartwatches are well-priced as opposed to most of their competitors and come with their own operating system, the popularity of other devices in the same space as taken away from Pebble’s sheen. The devices, despite being sturdier and in multiple cases better at functioning and features (and at a cheaper rate) as against most competitors, Pebble has still failed to keep interest floating. Also, there is a vast competition in the market today. Coming to FitBit, the brand’s sales have been dipping and it has not been performing in recent times. FitBit stock prices have been going down over the past year and while the company was in top form initially, it has been unable to keep up the pace. Through this acquisition, FitBit might be able to ramp up once again and give tough competition to the likes of JawBone which have been growing at a considerable pace.