Fitbit stock spikes 30% on report that Google wants to buy it
Fitbit, which has struggled to compete with Apple, may soon team up with one of Apple’s top rivals.
Alphabet, the parent company of Google, is said to have offered to acquire the fitness tracker maker, according to a Reuters report, which cited anonymous sources familiar with the matter.
The report did not include a price.
Fitbit’s share spiked more than 30% at one point in intraday trading after the report.
Google and Fitbit refused to comment. The alphabet will report profits after the clock on Monday.
Earlier this year, the company lowered the price of some of its units and launched a new subscription offering called Fitbit Premium, which provides more in-depth insights on sleep, fitness, and general health.
Tap into subscription services comes as Fitbit struggles to compete in the smartwatch market. Apple is a leader in this market globally, followed by Samsung and then Fitbit, according to a new report from Strategy Analytics.
In July, Fitbit pulled out the outlook for the entire year following a disappointment on the Versa Lite smartwatch. Even with the shared pop on Monday, Fitbit is still trading below $ 6 per share, well below its market price of $ 20 per share from 2015.