Fitbit purchased Pebble for a lot less than what everybody thought

Fitbit acquired Pebble a few months ago, but the actual dollar amount of the deal was kept a secret until Fitbit’s recent earnings release. When Pebble was acquired, estimates put the deal at less than $40 million. While that ended up being true, it’s actually a lot less than what everyone thought.

According to the earnings release, Fitbit actually purchased Pebble for a meager $29 million.

That number is certainly a lot less than what everyone thought Pebble was worth. Pebble quickly became a popular smartwatch maker on the market, but once banks lost confidence in Pebble, the company was forced to sell, which is where Fitbit came in.

Fitbit isn’t really keeping the Pebble name going. In fact, they’re planning to essentially throw out all of the Pebble hardware. Instead, they’ll just be integrating the software with their own products.

Fitbit itself seems to be struggling a little bit, reporting a 19% revenue drop for Q4; however, things are looking up, as the company has some big products lined up for this year.

source: Business Insider