Fitbit shares jump 3.7% as Facebook revealed to have entered bidding war with Google
Facebook has been revealed as the mystery rival bidder for Fitbit after Google agreed to acquire the company for $2.1 billion (£1.63 billion)
Fitbit’s shares jumped 3.7 per cent yesterday after an SEC filing was published revealing a bidding war between Google and another mystery firm.
According to the filing several firms met with the smartwatch brand to discuss an acquisition, but only Google and a mystery “Party A” offered serious bids.
James Park, the chief executive of Fitbit, had dinner with “the CEO of Party A” on June 11, and again on July 2, and once more in September the filing said.
This was revealed yesterday to be Mark Zuckerberg, who would go on to bid several times for the company, but now says it will not bid again and views the sales process as complete.
Google tabled a bid for Fitbit on November 1 for $7.35 per share ($2.1 billion), which sent shares in the wearable tech company skyrocketing 27 per cent.
The deal is awaiting approval by competition authorities but has already received a backlash from privacy protestors and politicians concerned about the amount of personal data, including heart rates and sleep times, that would be handed to Google.
“Google should not gain control of Fitbit’s sensitive and individualised health data that can be integrated with data from its current services to entrench its monopoly power,” campaign groups including the Open Markets Institute, Public Citizen and the Electronic Privacy Information centre said.