The wearable company acquired Pebble at a very low cost, $35 to $40 million, given the large debts accumulated in recent years
Fitbit strengthens its power in the wearable market by buying Pebble, the company specializing in smartwatch development. A wise choice that of Fitbit considering that the economic difficulties of Pebble have lowered the final price of the acquisition up to 40 million dollars.
Fitbit acquires the software and the workforce of Pebble.
Until recently Pebble was a quite growing company with a sales power around 70-75 million dollars. In recent times, however, with the decline in sales have increased debts and Fitbit, according to rumors from The Information, managed to snatch the acquisition for a price between 35 and 40 million. A figure that barely covers the accumulated debts. Pebble had tried to relaunch itself in October with the release of its new smartwatch, but the holes of the previous year had been too many. About 25% of its staff had been laid off as early as March. By the end of 2015, the company had accumulated 28 million in debt.
Is interest in smartwatches waning?
Some market analysts have blamed Apple’s strong competition with its smartwatches as the reason for Pebble’s crisis. According to others, however, the company’s main enemy has been the wearable market, with particular reference to smartwatches. After an initial interest, in fact, smartwatches are attracting fewer and fewer new consumers. And someone also wonders if these devices, as we know them now, can have a solid future. Fitbit believes in it and wants to combine Pebble’s knowledge with the appeal of its devices to increase its cohort of users. Given the low acquisition price this is a calculated bet.