the way home. Google could then display ads
for rival coffee shops.
More important, having a Google device on
the wrist could drive wearers to use Google
services even more, giving the company more
ways to sell ads.
The deal is likely to face scrutiny from state and
U.S. Department of Justice antitrust authorities,
who are already investigating Google and other
big tech companies over whether they have
abused their market power.
“Why should Google be permitted to acquire
even more companies while they’re under DOJ
antitrust investigation?” Sen. Josh Hawley, a
Missouri Republican, tweeted.
Still, analysts at equity research firm Cowen said
they believe regulators are unlikely to block the
deal because of Fitbit’s relatively small size and
its focus on hardware.
While Fitbit all but created the field, it has been
shredded by the competition. It was worth
nearly $10 billion after it went public in 2015.
But its value this week is well below $2 billion.
When rumors of a potential buyout by Google
surfaced earlier this week, Fitbit stock soared
almost 30%. It jumped nearly 16%.
Google’s corporate parent, Alphabet, will pay
$7.35 per share. Alphabet stock gained about 1%.
“With Google’s resources and global platform,
Fitbit will be able to accelerate innovation in the
wearables category, scale faster, and make health
even more accessible to everyone,” Fitbit co-
founder and CEO James Park said in a statement.
Fitbit has been expanding its partnerships with
major health care companies such as Humana to
encourage healthier living.