Fitbit Buys Smartwatch Maker Pebble For $40 Million, Could Spell Upgraded Fitness Wearable Comeback?

Fitness wearable Fitbit is reported to purchase smartwatch maker Pebble for $34 to $40 million. This is probably in a move for Fitbit's comeback in the market and to steer clear one of its strongest competition, besides giants like Apple and Samsung.

In an in-depth report from The Information, the fitness wearable Fitbit is in its last phase of striking a deal with smartwatch maker Pebble even before Thanksgiving. This comes as no surprise since the smartwatch maker Pebble has been in the market due to financial issues the company has been facing, for some time now.

Meanwhile, as the actual buying price has not been revealed, a source told Engadget that fitness wearable Fitbit will purchase smartwatch maker Pebble for approximately $34 to $40 million. This is barely enough to cover for Pebble's balance due amounting to $25 million from its suppliers.

Fitbit is reportedly buying troubled smartwatch maker Pebble for around $40 million https://t.co/eJtEMPWjNn via @techcrunch

— John Biggs (@johnbiggs) December 1, 2016

The smartwatch maker has been in financial hot water even early this year. Fortune even reported in March 2016 that Pebble laid off 25% of its employees in order to salvage whatever is left, financially. But Pebble CEO Eric Migicovsky commented that the layoff was "a chilly fundraising environment" required in Silicon Valley.

If the acquisition does push through, the last wearables from the smartwatch maker Pebble will be Pebble 2 and Time 2, which are both expected to ship in January 2017. Also, Fitbit's biggest competition to date will no longer be available as the company is theirs.

Fitbit's acquisition of Pebble may not be due to the company's brand or product lineup but because of its tech and intellectual property. Pebble ushered in the smartwatch era launching its first smartwatch ahead of Apple by 2 years.

Fitbit could finally combine its trackers with Pebble's technology to produce a decent smartwatch that could outcompete giants like Samsung and Apple and regain the lead in digital health apps. This is good news for Fitbit, but a totally different news for Pebble as rumors have it that Pebble-branded devices will be phased out.

Fitbit has yet to comment regarding it soon-to-be official acquisition of the smartwatch maker Pebble. Meanwhile, stay tuned for more updates on the latest in tech news.