Fitbit Inc. is reportedly in talks to acquire the troubled smartwatch maker Pebble for an undisclosed amount. Engadget reported Thursday that the deal could amount to between $34 million and $40 million.
Pebble had a successful debut in 2012 with its Pebble smartwatch. It got its smartwatches crowdfunded from Kickstarter, but had suffered from financial troubles recently — laying off 25 percent of its workforce in March. This is not the first time that Pebble has had buyers — the company received a $70 million offer from Intel in 2015 if it would hold off on Pebble 2 and Pebble Time 2 release. The company had declined the offer, according to Engadget.
So what’s the future of Pebble under Fitbit?
Well, not bright. The Information reports if Fitbit acquires Pebble, then the company’s devices would be phased out following the acquisition. Fitbit would buy Pebble only to get access to its intellectual properties and technologies, including the Pebble operating system. The acquisition might also signal Fitbit’s diversification from fitness wearables, which the company has been focused on until now.
Fitbit’s interest was reportedly piqued by Pebble’s latest device – the Pebble 2 smartwatch, which has fitness-based features.
Neither Fitbit nor Pebble has disclosed any information on the deal.