A wearable manufacturing tech giant Fitbit is finalizing a deal to buy Pebble. Recent reports claim that Fitbit has offered a price between $34 million to $ 40 million. Fitbit is all set to acquire smartwatch maker and multi-million-dollar Kickstarter-darling Pebble.
According to TechCrunch, the acquisition is a "small amount" indicating that the once a famous manufacturer Pebble would go for a little. Further, the information revealed that the deal will see Pebble and its products closed down over time with Fitbit acquiring its assets, which include intellectual property and software.
A spokesperson from Fitbit told TechCrunch that "We don't comment on rumors or speculation,"
It is well-known that the Pebble was looking for buyers and recent reports of it announcing to lay off 25 percent of its workforce. During the announcement of layoff, Pebble CEO Eric Migicovsky didn't give an exact reason, only stating that money was "pretty tight." Later, he confirmed his company had raised $28 million in debt and venture financing.
According to ARS Technica, it is reported that Pebble has turned down the offers made to it in the past. Citizen was interested in purchasing Pebble for $740 million in 2015 and the deal failed to take place, Then, before the launch of the Pebble 2 Intel made an offer for $70 million. The CEO, Eric Migicovsky refused both offers.
Now, a current report indicates that Fitbit has offered a price between $34 and $40 million for the company. It is also stated that the reason of Fitbit acquiring Pebble is only because of Pebble's intellectual property and its operating system. Fitbit may bring-in Pebble's operating system in the new upcoming wearables.
It is also reported that Fitbit is also facing many challenges in the wearable tech market and one of the biggest competitor for Fitbit is Apple. Recently, Apple has emerged as one of the finest and best manufacturers of fitness wearable's and smartwatches.