Earlier this week, there were reports that FitBit was in the process of acquiring star startup, Pebbles, which pioneered the technology of wrist-based notifications - before Apple and others followed. The startup has just confirmed that the deal is final. CEO Eric Migicovsky revealed what the acquisition entails or the smaller company and what will happen to its startups.
"We have made the tough decision to shut down the company and no longer manufacture Pebble devices," Tech Crunch quotes him saying. "While dissolving Pebble as you know today is difficult, I am happy to announce that many members of Team Pebble will be joining the Fitbit family to continue their work on wearable software platforms."
Migicovsky went on to clarify that existing Pebble products will continue to work and there will be no immediate change in terms of user experience. However, he also said it is possible that services and functionality may be reduced sometime in the future. This is likely to mean that the lifespan of these products are pretty much in the hands of FitBit.
The publication also mentions that it has been rumored that the purchase of Pebble cost FitBit something between US$34 million to US$40 million. Reportedly, the startup accepted the deal because of its debts, which the price did not cover completely. However, the LA Times reports that no clear reason was provided to the public in terms of why Pebble accepted the offer. The company did not readily respond to requests for comment on this.
On the other hand, FitBit has chosen not to disclose the details of the deal. As a spokeswoman of the company wrote to the publication, "the acquisition is not material to FitBit's financials." What the larger company will get, however, are vital personnel and intellectual property related to all software and firmware that has been developed by Pebble.
