Under its challenges of moving to smartwatches from fitness trackers, Fitbit has reportedly been in discussions with an investment bank surrounding the possibility of looking into a sale. The company is said to have had difficulty getting a foothold in the category of smartwatches as Samsung Electronics Co and Apple Inc. have cornered a greater market share with their devices, Reuters reported.
According to unnamed sources in the report, Fitbit has not come to the decision to go after a sale, and it’s not definite that it will. The company has reportedly had discussions with Qatalyst Partners, an investment bank, about if it should engage with possible acquirers. Qatalyst has reportedly been aiming to convince Fitbit to look into its choices for many weeks, with the idea that it could bring in interest from private equity firms in addition to Alphabet Inc.
The report noted that the sources did not want to make their identities known as the situation is confidential. Alphabet and Fitbit said it isn’t their policy to comment on speculation and rumors, the report said, while Qatalyst didn’t reply for a comment request per the report.
Fitbit’s dominant fitness tracking sector share is still being chipped away with less expensive products from firms such as Xiaomi Corp and Huawei Technologies Co Ltd. Its fitness trackers keep tabs on the daily steps, distance traveled and calories burned of users. They also monitor sleep duration and quality, heart rate and floors climbed.
The news comes as Fitbit has debuted a $10 monthly premium subscription service in a shift away from hardware and toward content. And, if customers don’t want to pay for the service on a monthly basis, they can purchase a year’s subscription for $80.
The announcement was made at a Manhattan event, where the company touted its software as well as services. It also discussed two new hardware products: the Aria Air scale and the Versa 2 smartwatch.