Time 2 will Likely be the Last Pebble Wearable After Fitbit Takes Over…
There are just two big brand (other than Samsung and Apple) that define quality wearables and they’re Fitbit and Pebble. While Fitbit is struggling to create a successful replica of Apple watches, Pebble has already built a name for itself in smartwatch industry. Nevertheless, its luster faded before reputed brands, especially Apple that is regarded as current gold standard of wrist wearables. Seeing this, both companies have decided to join their forces. As per the hottest rumors, Fitbit will buy Pebble for $40 million in the near future. Both the companies are on their way to finalize the merger.
Why did the Makers Collaborate?
While addressing a press conference, CEO Migicovsky confirmed that Pebble had raised a whopping $28 million amount in venture financing and debts. Falling short of funds, they had turned to loans to stay afloat. This came as a surprise for Pebble fans who were quite excited after seeing the Kickstarter ad campaign for Pebble Time 2 and Pebble 2 watches. This campaign has already helped the company gain about twelve times more than the standard amount fixed by the company, which was $1,000,000. If things go as planned, these will likely be the last wearables manufactured by Pebble.
Some tech-freaks think it was foolish of Pebble to turn down Citizen and Intel’s offer, who offered to purchase them for $740 million and $70 million respectively. The amount offered by Fitbit is comparable to nuts.
Nevertheless, this deal would benefit both the companies. Even Fitbit has to deal with its declining share values and financial brunt. Back in 2015, the owners listed company stocks at $50. Now, they’ve been marked down to $8.40. Therefore, Fitbit will try to take over Pebble, in an attempt to access its technology. It has nothing to do with product line or brand signature.
All in all, something worthwhile may come out of this association. Fitbit can put Pebble’s tech into their trackers. Thus, they can finally build a sophisticated and decent smartwatch to give a tough competition to other watches.