Facebook tried to acquire Fitbit but Google edged it by a small margin
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Facebook tried to acquire Fitbit but Google edged it by a small margin
Googlebit might be better for consumers than Facebit
In brief: SEC filings show there's been a bidding war between Facebook and Google over Fitbit, which the latter eventually won by a small margin. Fitbit employees seem optimistic about the acquisition, but privacy advocates are still questioning the implications. It's possible that Google and Facebook both wanted to tap into the health data of over 28 million users, as most of the innovation they could bring would be on the algorithms side of the equation.
When news broke earlier this month that Google managed to buy Fitbit for $2.1 billion, many users were more than a bit disappointed. Some of them even told CNBC that they're actively looking to get rid of their Fitbit products and move on to alternatives like the Apple Watch as soon as possible.
It also prompted privacy and antitrust advocates to send a letter to the Federal Trade Commission where they argue the deal will give Google even more dominance over internet services and access to a new pool of consumer data.
They propose the deal be blocked, but now an SEC filing shows that Facebook also wanted to acquire the wearable maker. To get an idea of how close it was to succeeding, the social giant's final offer was sitting at $7.30 per share versus Google's $7.35.
In other words, Facebook is the mystery "Party A" that wanted to snap up Fitbit just as much as Google. Also, it looks like the CEOs of the two companies met several times for dinner to discuss the fitness wearable industry and its untapped potential.
Those who owned a Pebble expected Fitbit to come up with something similar after acquiring the intellectual proper