Fitbit to buy smartwatch company Pebble along with its IP
Pebble, the smartwatch company that rose to fame with its successful Kickstarter campaign in 2012 may be on the verge of a phase out. According to reports on The Information and Financial Times, fitness industry giant Fitbit is in talks of acquiring Pebble. There is no word on the acquisition price yet, or when the two companies would go ahead with the deal, but it’s learnt that the deal could work out for a nominal amount.
According to reports, Fitbit is likely to acquire Pebble’s intellectual property, which includes the company’s operating system. This would translate into complete phase out of Pebble, which will then cease to exist.
If the booming smartwatch and wearable fitness tracker market is anything to go by, both Pebble and Fitbit have seen decline in their fortunes. Pebble which has gone through a few funding rounds is failing to make a mark and is facing serious financial crunch – the company laid off one-fourth of its workforce earlier this year. Fitbit too is not at its best, the company has had a mixed quarter 3 earnings to show.
The acquisition could give a new lease of life to Fitbit, which could come up with a new range of devices with successful Pebble brand under its hood.