Google buys Fitbit for $2.1 billion

Search engine giant stepping back into wearables with Fitbit’s 28 million active users

In this Aug. 16, 2018, file photo, the Fitbit Charge 3 fitness trackers are displayed in New York. (AP Photo/Richard Drew, File)

Google is buying Fitbit for about $2.1 billion, enabling the internet company to step back into the hotly contested market for smartwatches and health trackers.

Fitbit is a pioneer in wearable fitness technology, but it’s been shredded by that competition. Google, meanwhile, has been developing Wear OS software for other manufacturers to build wearable devices, but they haven’t gained much traction in the face of competition from Fitbit, Apple, Samsung and others.

The deal to buy Fitbit could give Google a needed boost.

“Google doesn’t want to be left out of the party,” said analyst Daniel Ives of Wedbush Securities. “If you look at what Apple has done with wearables, it’s a missing piece of the puzzle for Google.”

Matt Stoller of the Open Markets Institute, a research group that focuses on competition and consolidation, said health care is one of the few industries big enough to help a company as large as Google keep growing.

The deal, expected to close next year, will likely face scrutiny from federal and state antitrust investigators that have launched probes this year. “It’s obviously embarrassing to enforcers if they allow it without any sort of scrutiny,” Stoller said.

Fitbit makes a range of devices, from basic trackers that mostly count steps to smartwatches that can display messages and notifications from phones.

They can track a range of fitness activities, such as running, cycling and swimming, along with heart rates and nightly sleep patterns. Fitbit typically asks for date of birth, gender, height and weight to help with calorie and other calculations. Some users also use Fitbit devices and its app to track food and water intake. Women can also track their periods.

Google said it won’t sell ads using the sensitive health data that Fitbit devices collect, continuing promises made by Fitbit.

But that likely won’t stop Google from sucking up other personal data from Fitbit devices. Fitbit also has GPS models that could track users’ locations. That could help Google know that a runner stopped at a coffee shop on the way back, allowing Google to then display ads for rival coffee shops.

ALSO READ: Social media giants ignore law, don’t take Canada seriously, MPs say

More importantly, having a Google device on the wrist could drive its wearers to use Google services even more — giving Google more ways to collect data and sell ads.

Google’s announcement suggests that Fitbit will be absorbed into Google’s main business, rather than staying as an independent subsidiary of parent company Alphabet. That follows the trend of smart home device maker Nest, which was folded back into Google in 2018 after being a stand-alone company under Alphabet.

Fitbit has 28 million active users worldwide and has sold more than 100 million devices.

The Associated Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nine new COVID-19 cases announced in Interior Health region

The total number of cases since the pandemic started is now at 531 for the region

Downtown Salmon Arm cancels Halloween Treat Trail

First time in 30 years community event won’t be taking place

Shuswap BC SPCA launches spay/neuter program

Program available to low-income residents in the region

Salmon Arm Pride Project festival planned for October

Exhibition designed to bring awareness to LGBTQ2S+ issues through the arts

Need for housing in Salmon Arm climbs while units being constructed

More demand for temporary shelter and much earlier than in 2019

Weekend sees 267 cases, 3 deaths in B.C.; Dr. Henry says events leading to COVID spread

There are currently 1,302 active cases in B.C., while 3,372 people are under public health monitoring

Lightning strike: Tampa Bay blanks Dallas 2-0 to win Stanley Cup

Hedman wins Conn Smythe Trophy as playoff MVP

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Motorcycle rider identified following fatal crash in Peachland

Michael Odenbach died in a motorcycle collision on Sept. 27

Liberals seek to fast track new COVID-19 aid bill after CERB expires

Government secured NDP support for legislation by hiking amount of benefits by $100 to $500 per week

B.C. VOTES 2020: Echoes of HST in B.C. debate over sales tax

Cannabis, tobacco, luxury cars still taxed in B.C. Liberal plan

More victims possible in Okanagan assault case

Vernon police have a man in custody but feel there could be more victims in the case

She warned her son about toxic drugs, then he was dead

Donna Bridgman’s son died at the age of 38 in Vancouver

Most Read