Fitbit Buyout Will See Pebble's Time 2 and Core Wearables Canceled, Refunds Issued

Late last month we reported that Fitbit was closing in on a deal to acquire smartwatch maker Pebble "for a small amount". Bloomberg has now revealed that the buyout will cost "less than $40 million" and exclusively concerns Pebble's software assets, which are being sought by Fitbit "in a bid to better compete with Apple", according to people familiar with the matter.

pebble_family_wht_crop_web
Yesterday's update on the details of the acquisition comes at a time when the wearables market as a whole appears to be facing increased uncertainty and significant profit hurdles. Earlier this week, in response to IDC market research claiming that Apple Watch's share of the wearables market had fallen to 5 percent, Apple CEO Tim Cook said Apple Watch's sell-through rate had hit a new high. Cook was responding to data which suggested fitness trackers "reigned supreme" in the market, yet Fitbit has seen its own struggles, with the company's shares tumbling 30 percent after announcing mixed third-quarter results and weak guidance for its fourth quarter.

To improve its standing in the market, Fitbit reportedly wants to hire Pebble's software engineers and testers, and get hold of intellectual property including the Pebble OS, watch apps, and cloud services. The $40 million buyout sum does not include Pebble's debt and other obligations, product inventory or server equipment, all of which will be sold off separately, said the people, who asked to remain anonymous.

The news all but confirms the end of the road is in sight for Pebble's entire product line-up, including its most recent smartwatch announcements, the Pebble 2, Time 2, and the Pebble Core. The Pebble 2 has already started shipping to people who funded the startup through crowd-funding site Kickstarter, but the Time 2 and Pebble Core will be canceled and refunds will be issued to Kickstarter backers, said the sources.

Following the buyout, Pebble's offices will be closed and former engineers will relocate to Fitbit offices in San Francisco. There's no word yet as to whether Fitbit will decide to use the Pebble brand in future.

The deal will make Pebble stock held by employees "worthless", said sources, with the money earned on the acquisition going to debt holders, vendors, some equity investors, and Kickstarter refunds for the Time 2 and Pebble Core orders.

Tags: Pebble, Fitbit

Top Rated Comments

niun Avatar
54 months ago

Hehehe, this is hilarious. From day 1 the pebble software was the worst thing about it. It never got much better during the lifetime of the pebble (I had the first pebble and pebble time) - I can't stop laughing that this is what fitbit bought xD xD xD

Not saying this as a disgruntled user btw but as a programmer.

Yeah, I often have a chuckle at loads of people losing their jobs before Xmas. :rolleyes:
Score: 21 Votes (Like | Disagree)
Glassed Silver Avatar
54 months ago

Does this mean existing Pebble watches would stop working? There's plenty of functionalities that depends on their Internet service:

* Installing apps
* Configuring watchfaces
* Voice transcription

Another beautiful example of why I don't trust "the cloud" for anything permanent and opt to avoid it as much as I can.

Not possible with every service or product, but I'm certainly trying not to let myself get screwed too much.

To think some folks in the gaming industry think that gamesaves, vast amounts of computing for a given game and other things should be (partially) relegated to the cloud scares me and that's just one of many examples.

Glassed Silver:ios
Score: 15 Votes (Like | Disagree)
niun Avatar
54 months ago
Well I'm peeved. Love my Pebble Time and was looking forward to getting a Time2. At leat I'll be getting a refund.
Hope the Pebble folks manage to land on their feet.
Bummer all round really. :(
[doublepost=1481111663][/doublepost]

Good, all things terrible have to disappear eventually.

Like.. Maybe that attitude?

Seriously. Did you mistake Pebble for Aids or something?
Score: 9 Votes (Like | Disagree)
ArtOfWarfare Avatar
54 months ago

The deal will make Pebble stock held by employees "worthless"

This practice enrages me, and it's why I turn down stock and demand higher pay.

Most companies never have IPOs. The stock never becomes worth anything. You'll almost certainly be better off just taking cash.
Score: 7 Votes (Like | Disagree)
rusty2192 Avatar
54 months ago
RIP Pebble. I love my original Pebble. It has sold me on smart watches. The best things about the pebble are the 5 day battery life, cheap, and indestructible. The plastic screen on the original one is a little too soft so a screen protector is a must. I regularly put this thing where no watch has any business, like deep into a tight engine bay of a car. If I had an Apple Watch I'd constantly be afraid of damaging it.
Score: 6 Votes (Like | Disagree)
sunapple Avatar
54 months ago
Damn, what a disaster. Sucks for everyone involved, seemed like a group of passionate people.
Score: 6 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro magsafe

MagSafe is Coming Back to the Mac: A Look Back at Apple's Original Magnetic Charging Technology

Friday January 15, 2021 12:16 pm PST by
Surprise late night rumors last night provided us with our first in-depth look at what we can expect from the new MacBook Pro models that are coming in 2021, and there are some significant changes in the works. Along with additional ports, a new flat-edged design, and the removal of the Touch Bar, Apple's updated MacBook Pro machines will readopt MagSafe. MagSafe in the 2021 MacBook Pro...