A few days ago, a number of reports surfaced indicating that Fitbit is in the final phase of talks to acquire Pebble, mostly its software assets. The company recently started shipping the Pebble 2 watch, but it left the fate of the two other products funded by the company’s Kickstarter campaign, Pebble Time 2 and Pebble Core uncertain.
Thanks to a new report, we now know that the acquisition is imminent and the deal with Fitbit will focus only the Pebble’s software assets, as the leading fitness trackers producer has also offered jobs to around 40 percent of Pebble’s staff. However, the majority of the new jobs only involved software engineers which worked the operating system of the Pebble smartwatches.
As such, the imminent deal will reportedly not include any hardware, neither current or the future Pebble products. Even the various assets such as product inventory and server equipment will be sold off separately.
This part of the acquisition deal will impact a number of Kickstarter backers and pre-order customers who were expecting the launch of the two other remaining Pebble products, the Pebble Time 2 and Pebble Core, which have been canceled. Although some users will feel disappointed about the decision, the company will issue a refund to everyone who participated in the Kickstarter campaign that raised $13 million.
The Pebble Time 2 was meant to offer a more premium experience of the standard Pebble smartwatch, while the Pebble Core could have been the company’s first gadget that wasn’t a watch. The small device had a built-in GPS and was also able to play music from Spotify. Pebble advertised the product as great keychain accessory.
Currently, neither Fitbit nor Pebble has officially confirmed the existence of the acquisition, but the report seems accurate enough, if not the companies would have immediately dismissed it. The canceled state of the products isn’t reflected as of yet on the company website or Kickstarter campaign.
Pebble’s CEO, Eric Migicovky, will very likely part with the company after the deal goes through. He will probably return to Y Combinator to advise new companies on hardware development. Regarding the rest of the employees who will not be hired by Fitbit, they will be offered severances packages.
Were you a Pebble customer? If so, what do you think about the acquisition?
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