Pebble has confirmed that it is shutting down operations and that Fitbit has purchased its software assets and hired many of its developers. Based on information from “people familiar with the matter,” Bloomberg is reporting that FitBit paid less than $40 million in the deal but that Pebble’s debts and financial obligations exceeded that amount. Pebble plans to sell off its other assets separately.
“With basic wearables getting smarter and smartwatches adding health and fitness capabilities, we see an opportunity to build on our strengths and extend our leadership position in the wearables category,” said James Park, chief executive officer and co-founder of Fitbit.
Smartwatch sales declined 52 percent in the third quarter.