Thursday, December 01, 2016

Fitbit is buying troubled smartwatch maker Pebble for around $40 million | TechCrunch

For another case study on the importance of investor timing, see GoPro cuts 15 percent of jobs to restructure struggling camera business (The Verge)

"The site reports that the acquisition is a “small amount” but there’s no word on exactly how much, or indeed how little. Further, The Information said that the deal will see Pebble and its products closed down over time, with Fitbit acquiring its assets, which include intellectual property and software.

“We don’t comment on rumors or speculation,” a spokesperson from Fitbit told TechCrunch. Pebble is yet to respond to our request for comment.

A source close to the company told TechCrunch that watch maker Citizen was interested in purchasing Pebble for $740 million in 2015. This deal failed and before the launch of the Pebble 2 Intel made an offer for $70 million. The CEO, Eric Migicovsky refused both offers. Our source said that Fitbit is now paying between $34 and $40 million for the company and is “barely covering their debts.”"
Fitbit is buying troubled smartwatch maker Pebble for around $40 million | TechCrunch
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