Google’s parent company Alphabet GOOGL has reportedly made an offer to buy Fitbit FIT. Shares of FIT surged in the wake of the reports, and the stock closed up 30.5% on Monday.
Fitbit is best known for its fitness trackers and other wearable devices, but has struggled lately due to weak sales of its new lightweight watch. An Alphabet acquisition could give the company a much needed boost. As for the search giant, scooping up Fitbit would potentially help it become a bigger player in the wearables industry, and help Alphabet compete with Apple AAPL in the health and fitness space.
Right now, Google does not make a smartwatch, but it licenses its Wear operating system to Fossil FOSL, LG LPL and other companies who manufacture wearables. Rumors of a Google-branded Pixel smartwatch have been floated for years, and could help pump up Alphabet’s hardware business.
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