Pebble smartwatches
One week after media reports emerged that Fitbit would acquire Pebble for up to $40 million, a slightly different story has emerged. Fitbit has acquired certain assets and personnel from Pebble as the smartwatch developer ends production and shuts down. Those assets do not include Pebble’s hardware products. The development marks the latest in what has been a year marked by upheaval for wearables companies.
Fitbit noted in a news release that the deal would help speed up third-party applications for the company’s Fitbit Group Health business.
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“With this acquisition, Fitbit adds deep industry expertise in platform development that complements the company’s core discipline of innovative health and fitness features. The additional resources will facilitate the faster delivery of new products, features and functionality while introducing speed and efficiencies to develop the general purpose utility consumers value in a connected device. The acquisition will also accelerate the development of customized solutions and third-party applications for Fitbit Group Health customers and partners, including researchers, employers and providers.”
A spokeswoman noted that “the majority of Pebble employees in the software engineering function, as well as select employees in other functions,” will join Fitbit, in an emailed response to questions.
Pebble CEO and Founder Eric Migicovsky said in a blog post addressing the smartwatch company’s community of customers, backers and partners that the producer would cease manufacturing operations and referenced Fitbit’s acquisition of certain assets and personnel, particularly Pebble’s third-party development platform. He noted the company has sold 2 million smartwatches since Pebble’s launch in 2012.
“….due to various factors—Pebble is no longer able to operate as an independent entity. We have made the tough decision to shut down the company and no longer manufacture Pebble devices.”
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“While dissolving Pebble as you know today is difficult, I am happy to announce that many members of Team Pebble will be joining the Fitbit family to continue their work on wearable software platforms. Pebble’s successful approach to third-party wearable development is undeniable, and Fitbit is welcoming our expertise in this space wholeheartedly.”
Migicovsky noted in a list of bulleted points on the blog post that functionality or service quality for its devices may be reduced in the future. He also pointed out that Kickstarter backers who have not received their rewards will receive a full refund within four to eight weeks as a charge back to their credit cards.
It’s been an eventful year for wearables companies, marked by consolidation, such as Nokia’s acquisition of Withings, job losses and disappointing profits from Fitbit. Although Pebble had the advantage of being a few years ahead of Apple with its smartwatch, the smartwatch maker could not keep the competition at bay.
