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

Non-profits that are helping people impacted by COVID-19 can apply for relief funding

Red Deer and District FCSS can draw from a provincial pot of $30 million

No Alberta renter will be evicted for non-payment on April 1, promises the premier

No evictions during the entire Alberta public health emergency

Opening Red Deer’s safe consumption site would reduce strain on system during COVID-19, says advocate

Alberta should give also give addicts clean drugs, added Deborah Watson

Sylvan Lake product named SCAHL’s Best Goaltender

West Central Bantam AA Tigers’ Spencer Michnik received the coach-voted award for the 2019-20 season

A message from the publisher

Consider a voluntary subscription to Sylvan Lake News

Regions brace to fight rising flood waters and cases of COVID-19

Pontiac is one of dozens of flood-prone regions bracing for the possibility of rising waters

Feds working to get 248 Canadians stranded on COVID-19-infected cruise ship home

The federal government is working with the Panamanian government and Holland America

Trudeau says air, train travel to be denied for anyone with COVID-19 symptoms

Boarding of domestic flights and trains will be denied to those showing symptoms related to COVID-19

Morning world update: Cases surge past 600,000; positive news in Germany

Spain suffers its deadliest day as Germany considers April 20 to possibly loosen restrictions

4 passengers dead aboard cruise ship anchored off Panama

4 passengers dead aboard cruise ship anchored off Panama

Drumheller Institution in Alberta locked down, two inmates tested for COVID-19

Drumheller Institution in Alberta locked down, two inmates tested for COVID-19

Alberta’s premier rejects call to fire health minister over abuse of citizens

Alberta’s premier rejects call to fire health minister over abuse of citizens

Trump boosts virus aid, warns governors to be ‘appreciative’

Trump boosts virus aid, warns governors to be ‘appreciative’

Most Read