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Fitbit& #39;s proxy statement detailing the background related to the Google acquisition is something. There was a lot of feet dragging in the beginning, concluding with a bidding war at the end between Google and Facebook (according to CNBC). I& #39;m surprised by Facebook& #39;s interest.
Some of the juicier details:
- Fitbit started to think about selling in April 2019.
- Zuckerberg met w/ Fitbit& #39;s James Park to talk wearables.
- Things heated up in August. Five companies, including Google, were interested in an acquisition. Three backed out leaving GOOG & FB.
- Fitbit started to think about selling in April 2019.
- Zuckerberg met w/ Fitbit& #39;s James Park to talk wearables.
- Things heated up in August. Five companies, including Google, were interested in an acquisition. Three backed out leaving GOOG & FB.
- Someone leaked news of Fitbit looking to sell after Google was not ready to submit an offer and Facebook seemed to be dragging feet.
- After the leak, eight other companies reached out to discuss a potential acquisition. All of them said never mind.
- After the leak, eight other companies reached out to discuss a potential acquisition. All of them said never mind.
- Google& #39;s initial offer was for $4.59 per share. Fitbit said no way and then went to "Party A" (Facebook) to tell them to hurry up and submit a bid. Facebook continued to drag feet.
- Fitbit went to Google and said make it $6. Google responded with $5.05. (LOL)
- Fitbit went to Google and said make it $6. Google responded with $5.05. (LOL)
- Zuckerberg& #39;s initial offer was $5.90.
- Google upped its bid to $6.50.
- Fitbit asked for best & final offers and $250M termination fee.
- Google responded with $7.05 & agreement to pay fee.
- Zuckerberg responded with $7.30 & no mention of fee.
- Google won at $7.35 & fee.
- Google upped its bid to $6.50.
- Fitbit asked for best & final offers and $250M termination fee.
- Google responded with $7.05 & agreement to pay fee.
- Zuckerberg responded with $7.30 & no mention of fee.
- Google won at $7.35 & fee.
In summary: No one was eager to acquire Fitbit. Instead, GOOG & FB spent months thinking about how they could use Fitbit to advance their own interests. Both had to be pushed to bid. Fitbit& #39;s human capital probably was the most valuable piece.
This chart shows why Fitbit decided to sell itself. Apple turned health and fitness tracking from a business into a feature. https://www.aboveavalon.com/notes/2019/11/4/apple-watch-forced-fitbit-to-sell-itself">https://www.aboveavalon.com/notes/201...
