Fitbit/Pebble Deal is Confirmed

Pebble has confirmed that it is selling its software, its main asset, to Fitbit and that 40% of its staff, involved with software, have been offered jobs by Fitbit. The price is reported at $40 million which is believed to be less than Pebble’s debt. Pebble will try to sell its other assets. Pebble will close the company and cease all hardware operations. It is refunding buyers that have sent money via the company’s Kickstarter page. The company also said that it will try to switch Pebble devices to rely less on cloud services to try to extend the life of the devices.

Analyst Comment

Fitbit’s share price was hit quite hard as the market gave its opinion on the prospects for smartwatches. We missed a story last week that Lenovo will not bother to develop a new smartwatch to follow the Moto 360 or exploit the next version of Android for wearables. (BR)