While Google is developing smartphones with other big tech companies such as Apple Inc. (AAPL.O) and Samsung Electronics Co. Ltd. (005930.KS) still needs to be developed, portable offers need to be developed.
There is no certainty that negotiations between Google and Fitbit will lead to an agreement, sources said, who asked not to be identified because the case is confidential. The exact price offered by Google for Fitbit could not be determined.
Google and Fitbit declined to comment.
Fitbit’s shares rose 27%, bringing the company’s market capitalization to $ 1.4 billion. Alphabet stocks increased 2% to $ 1,293.49.
An agreement for Fitbit would follow, with the bulk of the fitness monitoring sector continuing to be squeezed out by cheaper deals from companies like Huawei Technologies Co Ltd (HWT.UL) and Xiaomi Corp (1810.HK) in China.
Fitness trackers Fitbits monitor the daily steps of the user, the calorie consumption and the distance traveled. They also measure rising soils, duration and quality of sleep, and heart rate.
Fitbit, a pioneer in the development of wearable devices, has partnered with health insurance companies and made acquisitions in the healthcare market to diversify revenue streams. Analysts said that much of the value of the company could be in the company’s medical records.
Fitbit lowered its revenue guidance for 2019 in July, due to disappointing sales of its most recently launched Versa Lite smartwatch. The watch costs $ 160, against $ 200 for the full version. It can record workouts and heart rates, but does not have features such as the ability to store music directly.
In August, Fitbit announced that it has signed a contract with the Singapore government to provide fitness follow-ups and services for a health program that it says could reach up to 1 million users.
Fitbit launched its latest smartwatch, Versa 2, in August, adding Amazon.com Inc.’s voice wizard Alexa (AMZN.O), online payments and music storage on the device.
Fitbit plans to release its third quarter results on November 6th. Alphabet is expected to release its results for the third quarter on Monday.
Fitbit would not be the first company that Google would do in the field of clothing technology. Fossil Group Inc. (FOSL.O) announced in January that it would sell its intellectual property to Google for $ 40 million in connection with emerging smartwatch technology. Google’s plans for these assets are unclear.
Reuters reported last month that Fitbit was discussing a sale with investment bank Qatalyst Partners.
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