Update: 1 November 2019 – Google acquired Fitbit for $2.1 billion.
Google’s parent company, Alphabet, has offered to buy Fitbit.
According to a Reuters report, Alphabet made the offer of an undisclosed amount.
No deal has yet been made.
Shares in Fitbit Inc shot up 30 per cent in the wake of the initial reporting before trading was suspended.
Alphabet’s share price took a slight hit in Monday’s trading after missing its earnings targets.
Both companies have stayed mum about the rumoured offer.
This move signals another turn in Google’s pivot toward producing consumer devices.
Unlike Google’s other smartphone competitors, like Apple and Samsung, Google’s product range does not currently include wearables.
The tech giant has enveloped over 200 companies since 2001, integrating many into its corporate strategy and products.
Earlier this month, Google unveiled its latest range of consumer devices that included updated smart-home gadgets now re-branded as ‘Google Nest’ – a company Google bought for US$3.2 billion in 2014.
It’s easy to see the value of wearable devices like Fitbits and smartwatches for Google as the devices are treasure troves of personal data.
Information unconsciously provided through wearables can be used to monitor mental health and has even inadvertently revealed the locations of military bases.
Health insurers have also begun rewarding customers who link fitness data with insurance policies.
Australians are early adopters of mobile technology and have taken a liking to wearables.
According to technology insights company, Telsyte, Australians bought 1.2 million wrist wearables in the first half of 2019 – a 22 per cent increase on the previous year.
The vast majority of the devices sold were smart watches, with Apple leading that market comfortably by taking in nearly 50 per cent of all smart watch sales in Australia.