Google announced earlier this week that it would purchase Fitbit, the ailing manufacturer of fitness-focused wearables and smartwatches, for $2.1 billion. As tech acquisitions go, this one was small: Google valued Fitbit at a price equivalent to that of budget TV manufacturer Vizio back in 2016, a company whose value exists largely in its retail distribution network.
As I alluded to in the opening line, Fitbit isn't doing well. Its stock peaked shortly after its IPO in 2015 around $45 per share, and even after the announcement of Google's acquisition, sits at just over $7 today. This is because Fitbit's newest products aren't, well, good: its most ambitious yet, the Versa 2, has been subject to criticism almost entirely for the software it runs, while the hardware does little to set it apart meaningfully from manufacturers like Samsung and Apple.
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