Google Acquires Fitbit

Fitbit's $2.1 billion acquisition by Google is expected to close in 2020.

⌚️ Has struggled on its own to compete with Apple in the smartwatch category.
⌚️ Gives Google parity to compete v. Apple in wearables.
⌚️ $7.35/share price is dismal from their post-IPO days in the $4X's but shares are ⬆️ 17%.
⌚️ Possibility for Google to use its sensitive health data on Fitbit’s 28M active users to build out new subscription health services.
⌚️ With Google's resources, looking to "accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone" as per co-founder + CEO, James Park.

With a previous $6.4B cap in 2015, profit margins cliffed from stiff competition, along with a bevy of new entrants- is this still a win?

SOURCE: Google Fitbit