Googler owner, Alphabet, is eyeing to own a chunk of the growing market of the fitness trackers, by acquiring the popular US-based device Fitbit, media reports stated.
Google is already is in the race of smartphones with major tech companies like Samsung, Apple and others. It is yet to launch its wearable products.
As per a report filed by Reuters, there is no certainty that Google and Fitbit would end up having a deal. The same report did not disclose the offer that Google has made.
Fitbit shares increased 27 per cent leaving its company market value at $1.4 billion. Whereas, Alphabet shares went up 2 per cent to $1,293.49.
A deal for the fitness tracker company would come as its primary share of the sector continues to fall by offering from other Chinese competitors like Huawei and Xiaomi. Even the Fitbit sales have dropped drastically in 2019, primarily because of its high price as compared to its competitors.
Health bands or trackers manufactured by Fitbit monitors users’ daily steps taken, calories burned, and distance travelled. It also monitors heart rate, floors climbed and duration of sleep.
Recently, Fitbit launched its latest addition ‘Versa 2’ with various latest features.
Fitbit is scheduled to present third-quarter earnings on November 6, while Alphabet is will present its third-quarter earnings later on Monday.
This is not the first time that Google had ventured into wearables. In January, it collaborated with Fossil. Under their agreement, the watchmaker said it would sell its smartwatch technology under development to Google for $40 million. However, Google’s plans for these assets are not clear, the report stated.
(With input from agencies)