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Fitbit acquisition doesn't seem to be an attempt it replace or bolster the WearOS platform. It may purely be a play to have a presence in fitness tracking space - which Apple, slowly but surely, has owned with Apple Watch. It is no longer just about smartwatch. https://t.co/3BsqUNsK8T— Amit Gawande (@_am1t) November 2, 2019
It isn’t obvious to many but Apple basically killed FitBit in the same way it did Nokia & Blackberry. Fitbit stock is off over 90% from its highs in 2015 because of Apple Watch. They simply couldn’t match the innovation.— Dare Obasanjo (@Carnage4Life) November 3, 2019
Funny enough pundits called Apple Watch a flop for years. https://t.co/wK414Tv14Y
The hardware business is very hard. Even if you "make it" and avoid buring all your cash, the best you can hope for is to be gobbled up by a giant. Nest (Google), Ring (Amazon), Eero (Amazon), Beats (Apple) and, now, Fitbit (Google). https://t.co/UYpmBngviw— Daisuke Wakabayashi (@daiwaka) November 1, 2019
2007: Fitbit founded.— Nick Crocker 🐘 (@nickcrocker) November 2, 2019
2009: Fitbit launched.
*Goes public having raised $66M across four rounds of VC funding*
*Valuation passes $12B*
2019: Acquired for $2.1B
If I recall correctly, Alphabet acquiring FitBit means that Google now controls hardware that's tied to some people's health insurance coverage?— Anil Dash 🥭 (@anildash) November 1, 2019
Fitbit 2019 revenue estimates are $1.45B so Google buying for $2.1B is not even 2x revenue.— Ben Bajarin (@BenBajarin) November 1, 2019
When negotiating an acquisition 3x revenue is usually the baseline. This is telling about the state of Fitbit.
I agree that Apple Watch is probably the best wearable, but it doesn’t work with Android. So I don’t know why pundits and analysts think it’s too late for Google to catch up. The large majority of smartphone users simply can’t use Apple Watch.— Brian Fagioli (@brianfagioli) November 1, 2019
Anyone know how the HTC acquisition has really worked out for Google (and HTC team)?— Rene Ritchie (@reneritchie) November 2, 2019
Motorola fell apart.
Nest has had ups and downs.
Some say HTC has been good. Others, kinda dysfunctional.
Fitbit has 28 million active users, but it has sold more than 100 million devices.— Christina Farr (@chrissyfarr) November 1, 2019
So most people that bought one aren't using it. Can Google fix the all important engagement problem? 75% churn is high, from what I understand.
What are people's theories on why Google acquired Fitbit?— Leo Polovets (@lpolovets) November 1, 2019
- brand? Google already has a decent hardware brand.
- hardware expertise? Google already has that.
- data? Android already provides way more data.
- team? They could poach best people for way less than $2b.
What's left? https://t.co/8a8IAPMiTc
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