The smartwatch company, Pebble is now owned by Fitbit in a new development. The fitness wearable has bought the firm at a price between $34 and $40 million. Predating the original Samsung Gear and Android Wear, Pebble’s first fundraising campaign raised over $10 million.
Reporting the deal, The Information said that Fitbit is very close to sealing the deal and also quoted that the firm is paying very ‘small amount’ for it. The report also reveals that the smartwatch firm is facing financial issues for last one year as its stock were falling from a peak of $49 in August to about $8 today, and hence it was looking for a buyout.
While, TechCrunch noted that Fitbit will pay somewhere between $34 and $40 million for the deal. FitBit said that if it will be able to manage in closing the deal it will completely phase out Pebble and the firm is interested in its intellectual property.
However, last year, the company was much valued than the current offer. Sources said that the popular watch manufacturer Citizen offered $740 million for a buyout. Besides, Intel also showed interest in purchasing Pebble for around $70 million, before the launch of Pebble 2 in May. But the company’s CEO Eric Migicovsky declined both offers, and now is considering $40 million maximum. The report states that Pebble will “barely cover their debts” with this deal.
Soon after the news started surfacing on the Internet, Pebble simply tweeted the ¯\_(ツ)_/¯ emoticon. It might be a reaction from the company about the announcement leaking early.