$2.1B Wearables Play

Fourteen months in the making, Google announced it has officially completed its $2.1 billion acquisition of Fitbit.

Consumer concerns over Google’s potential access to data in the merger have made headlines since the initial announcement, and the tech giant had to make a number of concessions to get the deal approved. 

• In a statement following the official acquisition, Google’s hardware chief Rick Osterloh said the move is “about devices, not data.”
• Despite the various hurdles it’s already faced, the deal still faces ongoing investigations by Australia’s Competition & Consumer Commission and the U.S. Department of Justice.  

“We complied with the DOJ’s extensive review for the past 14 months, and the agreed upon waiting period expired without their objection,” a Google spokesperson said. “We continue to be in touch with them.”

The acquisition of Fitbit will boost Google in an already competitive market as the demand for smartwatches rises. The global wearables market grew 35.1% year over year during the third quarter of 2020, according to the International Data Corporation. 

James Park, chief executive officer at Fitbit, says the company has sold more than 120 million devices.