Fitbit, co-founders James Park, and Eric Friedman decided to hand off the company to Google. Park, 43, and Friedman, 42, was serving the Fitbit as CEO and Chief Technology Officer. The two men worked so hard to build such a known brand. But they end up selling the company to Google.
Both Fitbit and Google fixed the deal at $2.1 billion. Park and Friedman walk away with $150 million before taxes as a result of selling their shares in the publicly-traded company.
Park said, Approximately 12 or more years ago, we set the company with a vision to make everyone healthier. He added that Fitbit will accelerate more with Google resources and global platform. It will actually make health more accessible to everyone.
This data shows, Fitbit Company was actually in Loss
In June 2015, Fitbit company decides $20 price per share. However, Google is paying $7.35 per share in cash for Fitbit shares. On the first day of trading, Fitbit’s stock sprinted to close at $29.68. However, Over a period of time, Fitbit’s stock descended into single-digit territory. As Fitbit struggled to unveil new products and face down competition from rivals including Garmin.
It was June last year, the company’s stock closed above $7.35 a share. However, it hits an all-time low $2.99 per share in August this year. last year, the company posted a net loss of about $186 million. The deal between Fitbit and Google is set to be close in 2020.