Daily Management Review

Fitbit up by 30% on rumors of possible takeover by Alphabet


Shares of the American manufacturer of fitness trackers and various smart fitness devices have reacted rapidly to media reports of interest from the parent company Google.

Kārlis Dambrāns via flickr
Kārlis Dambrāns via flickr
The reason for this rally was a message from Reuters referring to unnamed sources that Alphabet Corporation allegedly made an offer to buy Fitbit.

Agency sources added that negotiations between the parent company Google and Fitbit on this issue may not lead to a deal. The agency also did not name the cost of a possible transaction or any other parameters of the proposal by Alphabet.

Nevertheless, after the appearance of these news, Fitbit stock grew by more than 40%. In the second half of trading, the growth of quotations slowed down to 32%. Fitbit produces smart watches, trackers, smart scales, as well as a number of other fitness devices. 

source: cnn.com