Fitbit stock surges on report that Google parent Alphabet may buy company
Fitbit stock has jumped nearly 28% following a Reuters report that Google is preparing to buy the company.
Alphabet may be eyeing Fitbit, maker of the Versa 2 smartwatch.
Fitbit shares surged Monday on a report that Google's parent company Alphabet is looking into buying the wearable company.
Alphabet has "made an offer" to buy Fitbit, Reuters reports, though terms weren't disclosed. After briefly being halted, shares of Fitbit resumed trading late Monday morning, with the company's stock price rising by nearly 28% to $5.51 at time of writing.
Fitbit is the maker of popular wearables and fitness trackers including the recent Versa 2 smartwatch. Unlike the Apple Watch , which is iPhone-only, Fitbit's products work on both iOS and Google's Android platform.
Google has tried in the past to develop its own wearable platform called WearOS to rival Apple's smartwatch, but early efforts have failed to catch on with consumers, despite attracting a host of high-profile partners such as Tag Heuer, Fossil, Michael Kors and Movado.
In IDC's latest wearables report, the research firm found that Fitbit had a market share of 10.1% during the second quarter of 2019, shipping 3.5 million devices.
Fitbit and Google declined to comment. Alphabet is set to report earnings after the bell closes on Monday afternoon.
