Fitbit is reportedly in the early stages of exploring a sale
Fitbit might be ready to cede some control of its destiny. Reuters sources said the company is talking to investment bank Qatalyst Partners about the possibility of shopping itself around to would-be acquirers. Qatalyst has reportedly been pressing Fitbit to consider the option for weeks, suggesting that Alphabet and private equity outfits might be interested if it did. A move is far from certain, but it’s notable that a selloff is even on the table.
Fitbit and Alphabet have both declined to comment.
There might be good reasons for Fitbit to consider a sale. While it has enjoyed some success transitioning to smartwatches and services, it’s still struggling to return to profit. There have been missteps such as the poorly received Versa Lite. Fitbit isn’t in imminent danger if it continues to operate on its own, but a purchase could give it a lifeline and help it compete against rivals with vast resources.
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